The past few trading days have been characterized by numerous economic data on both sides of the Atlantic. In addition to the trade dispute, which is now a perennial issue, the ongoing reporting season has repeatedly provided important impetus. Investors are likely to turn their attention to the publication of the official US labor market report.
Investors bet on easing the tariff dispute between the USA and China
According to Beijing, it is currently examining an offer from the US government on issues relating to the tariff conflict. According to a spokesperson for the Chinese Ministry of Commerce, the US government has recently "taken the initiative on many occasions to provide information to China through the relevant agencies". China had recently shown itself to be open to talks in the trade dispute with the US.
According to the Chinese government, however, "sincerity" from the US is required. The United States should therefore be "willing to correct its wrong practices and lift unilateral tariffs", it continued.
ADP employment data significantly weaker than expected
The ADP employment data already gave a first taste of the non-farm payrolls in the middle of the week. With a total of 62,000 units, the expectations made in advance (155,000 units) were not met. These figures may provide a foretaste of today's publication of the "NFPs".
US economy collapses in Q1 2025 - German inflation declines
The US economy slumped more sharply than expected in the first quarter of 2025. This was due to a significant increase in US imports in the first three months. Annualized, economic output in the world's largest economy fell by 0.3%, compared to +2.4% in the previous quarter. However, growth of 0.3 to 0.4 percent was expected in advance.
The development of the German inflation rate, which fell in April according to initial estimates, was also a topic of discussion. Goods and services became 2.1% more expensive on average compared to the same month last year. This figure is the lowest level since October 2024. In March, the inflation rate was still at 2.2%. From March to April, prices rose by 0.4%.
EU inflation also falling, but less sharply than expected - US labor market data rounds off the trading week
New consumer price data for the eurozone was also published this morning. According to an initial estimate by the EU statistics authority Eurostat, price pressure in the eurozone was 2.2% in April, unchanged compared to March (year-on-year). However, a fall to 2.1 percent had been expected in advance.
Investors will be focusing on the official US labor market data (non-farm payrolls) at 14:30 at the end of the week, which could provide important monetary policy signals. In addition to the separately calculated unemployment rate, average hourly wages are also likely to attract interest.
DAX
Source: TradingView
Dow Jones Industrial Average Index
Source: TradingView
Apple warns of effects of the customs dispute
In light of Donald Trump's tariff policy, iPhone manufacturer Apple has warned of the effects of the tariff dispute and an economic slowdown. Apple produces over 90 percent of its products in China. The company had announced that it was planning to relocate the production of iPhones to India in order to minimize the impact of the trade war.
Apple
Source: TradingView
