News that will dominate the weeks ahead.
The new week will bring key indicators about the housing market; reports will focus on home prices, new home sales, and pending home sales. Additionally, durable goods orders are expected to have tumbled by a double-digit figure for a second straight month, falling by 15% m/m in April. The 2nd estimate of GDP growth for Q1 is released with no revision anticipated to the preliminary -4.8%. Personal income and spending numbers will also be in focus. Personal income is expected to drop 8.3% m/m, while personal consumption is projected to have collapsed by 9.7% m/m.
Meanwhile In Europe, Germany and France proposed a EUR 500 billion EU recovery fund. The proposal would be linked to the EU’s next seven-year budget cycle from 2021–2027.The European Commission would raise the money in the capital markets and use it to support EU spending rather than loans to national governments. However, Austria, the Netherlands, Denmark, and Sweden oppose the plan, saying they would only accept a rescue fund that gave out loans.
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