Economic wrap and Aussie jobs ahead - Westpac

Analysts at Westpac offered an economic wrap and outlook for today's events.

Key Quotes:

"Eurozone CPI inflation was finalised at 0.4% for April, 1.9% annual, which is a gain on the previous 1.5% annual pace but lower than  February’s 2.0%. The volatility in readings is partly an Easter effect, but overall the trend is rising gradually. Wage growth does remain subdued, however, particularly in Germany.

Event Risk

Australia: Apr employment is expected to increase 5k with the unemployment rising to 6.0%yr. Despite our Jobs Index pointing to upside risks for near-term employment gains, we are expecting survey volatility to drive a pull-back from Mar’s 60.9k jump which included full-time +74.5k and hours worked +0.2% - however both are tracking at just 0.8%yr annually.

Japan: The Q1 GDP preliminary is expected to be 0.4% from Q4’s 0.3%. While manufacturing and exports have been stronger, consumption is still lagging.

US: The May Philly Fed index remained elevated at 22.0 in Apr though this is half of Feb’s 33 year high. Risks are to the downside given this week’s surprise fall in the Fed Empire state index to negative territory. Fedspeak involves Mester speaking on the economy at a luncheon in Minnesota."