U.S. retail sales miss expectations
In the United States it was reported that Retail Sales declined more than expected last month, as spending began to ease post pandemic.
Figures released today showed that sales dropped by 1.3% in the month of May, after estimates forecasted a drop of 0.8%.
Today’s data also showed a revision for April’s final figure, with sales now increasing 0.9% instead of remaining unchanged from March as previously reported.
The drop in Sales moved the S&P 500 away from its record high, established earlier in today’s session, and now markets wait to see how the Fed reacts to recent economic conditions in tomorrow’s meeting.
As of writing, the Dow Jones was also down, trading 0.25% lower, with the S&P 500 off 0.16% and a 0.76% drop in the NASDAQ.
British employment reaches new record
Whilst data from the U.S. disappointed on Tuesday, figures from Britain were bullish, as the nation saw its highest monthly rise in employment since records began.
Data from the Office of National Statistics showed that companies in the UK increased their total number of employees by 197,000 last month.
This is the biggest monthly increase of Employment change since the inception of these statistics in July 2014 and takes the total number of employed Brits to 28.5 million.
In response to the data, British Finance Minister Rishi Sunak stated that, “The latest forecasts for unemployment are around half of what was previously feared and the number of employees on payroll is at its highest level since April last year“.
London’s FTSE 100 closed 0.36% higher in today’s session.
Oil Prices rally to multi-year highs
The rally that simply won’t stop, oil prices once again rose on Tuesday, hitting their highest level in almost 3-years as a result.
Many believe the recent rise in oil prices comes as a result of demand outweighing the short-term supply, whilst crude inventories also decline.
WTI crude rose to an intraday high of $72.26 earlier today, exactly a year after prices of the energy were below $35 per barrel.
Some believe that prices may be heading to $75 per barrel, which is the next key resistance level, and could begin to consolidate from that point.
With inflation a key topic at tomorrow’s Federal Reserve meeting, there could be some price uncertainty, depending on the Fed’s economic outlook.
Quote of the day – “There is a huge difference between a good trade and good trading.”– Steve Burns