Will inflation weigh on the morale of American households and their spending? In times of high inflation, such as the one we are experiencing, consumers tend to make trade-offs, favoring essential expenses (food, housing, transport) to the detriment of discretionary expenses, such as leisure or clothing. However, in the United States, the job market remains particularly solid, with a very low unemployment rate (3.6%) and wages close to very high levels, which should support consumption. The determination of the Federal Reserve and its boss, Jerome Powell, to limit inflationary pressures is also reassuring households. The retail sales, whose figure for the month of April will be unveiled at 2:30 p.m., are expected to rise by 1% over one month, after 0.7% in March, and by 0.4% excluding automotive (+ 1.4%). For its part, the Fed Chairman will engage in a Q&A with reporters from the wall street journal. Of less importance, three other American indicators will dot the session: the industrial production in april (consensus: +0.5% over one month), the evolution of wholesaler stocks in March (consensus: +0.2%over one month) and theNAHB survey of the morale of property developers and builders in May. Given the upward movement of interest rates in the country, the NAHB index could yield a few fractions: it is expected at 75, against 77 in April.
Engie expected on past impairments on Nord Stream 2
Closer to home, operators will take a look at theevolution of unemployment in Franceto UK and in the eurozone as well as at the second estimate of euro area GDP in the first quarter. The slowdown should be confirmed, with growth expected at 0.2% compared to the previous three months, and 5% over one year. The President of the European Central Bank, Christine Lagarde, will also speak at the end of the day as part of a conference organized by Soroptimist International.
On the values front, the energy company Engie will publish its first quarter results. It should announce the depreciation of its exposure to the Nord Stream 2 gas pipeline, whose commissioning Germany has suspended. Internationally, the results of the American distribution and DIY giants walmart and Home Depot will be scrutinized. Finally, many shareholders’ general meetings should be noted in France, including those of BNP Paribas and Societe Generale.
CP