IMF Chief Speaks to UK Voters on Brexit Risks

Daily Analysis - 20/06/2016

IMF Chief Lagarde Warns On Brexit Risks

IMF Managing director Christine Lagarde said on Friday that the European Union membership helped the UK's economy to be transformed into a dynamic and vibrant economy and that the country will continue to benefit by staying in the EU. She urged Britons to avoid a Brexit. The UK goes to the polls this Thursday, on June 23rd.

New Zealand Manufacturing Sector Expands In May

Economic data from New Zealand continues to pick up steam following the first quarter GDP results last week. Manufacturing continued to expand in May at an accelerated pace, data from Business NZ showed on Friday. The index expanded to 57.1 - higher than April's 56.6 and still safely above 50, indicating expansion in the sector. Within the manufacturing index, production jumped to 61.1 and new orders in the manufacturing sector expanded to 59.90. The upbeat numbers continue to positive GDP expectations in the second quarter of 2016.

Eurozone April Current Account Surplus Rises

Current account surplus for the Eurozone increased noticeably in April, data from the European Central Bank showed last week. The metric jumped to 36.2 billion euro in April, up from 26.3 billion the prior month. The increase came on higher primary income figures, which climbed to 8.3 billion in April. The current account surplus on trade in goods increased to 31 billion euro while services trade surplus fell to 5.6 billion. Over the past 12 month period, the Eurozone cumulative current account for the month ending April rose to 329.4 billion - approximately 3.10% of the area’s GDP.

US Housing Starts Slip 0.30% in May

Construction of new residential properties in the US fell -0.30% in May, according to data from the US Commerce Department. The report showed that housing starts edged lower to an annually adjusted rate of 1.164 million in May, down from 1.167 million in April. Economists were expecting to see a -1.90% decline on the month. In a separate report, building permits, which record the number of new permits issued by the government grew at a modest pace of 0.70% in May, lower than analyst forecasts and April's revised 4.90% monthly increase.

Canada's Core Inflation Rises 2.10%

Excluding the volatile food and energy prices, Canada's core consumer price index edged higher in May, rising 2.10% compared to a year ago. The core CPI marked a 10th consecutive month above the Bank of Canada's target. Headline annual CPI was 1.50%, marking the slowest pace of growth in nearly two years, according to Statistics Canada.