Summary: April CPI remained unchanged U.S. stocks low

U.S. stocks declined in Friday, with the U.S. stocks falling 4 days in the 5 trading session this week.　　The standard and Poole 500 index fell 5% this week, the worst week in two months. Today's economic data did not ignite investor enthusiasm, and the Labor Department reported that the CPI remained unchanged in April, consistent with economists ' expectations.　　Excluding energy and food prices, the core CPI grew 0.3%, slightly above expectations.　　The New York Fed reported that in May, the manufacturing sector shrank much less than economists had expected and less than April, indicating a slowdown in the pace of contraction.　　A Friday survey by the University of Michigan and Reuters reported that the U.S. consumer sentiment index rose in early May to a 8-month high. Industrial output fell by 0.5% in April and is expected to fall by 0.6%.　　Output utilization is 69.1%, better than the 68.8% forecast.　　The 16-member eurozone's first-quarter gross domestic product fell 2.5% per cent in the fourth quarter of 2008, according to Eurostat in Friday, the largest contraction in the eurozone's economic history in the first quarter of last year, indicating a worsening of the severe recession.　　New York's crude oil futures fell 2.28 of dollars, charging $56.34 a barrel.　　Britain's FTSE 100 index fell 0.3%, Germany's DAX index fell 0.1%, France's CAC-40 index rose 0.4%, and Japan's Nikkei index rose 1.9%. As of the close, the Dow Jones industrial average fell 62.68 points, reporting 8268.64 points, or 0.75%, and the Nasdaq Composite index fell 9.07 points, closing at 1680.14 points, or 0.54%,　　The standard and poor 500 index fell 10.19 points, with 882.88 points falling to 1.14%.　　As the standard and poor 500 index rebounded 30.5% from its 12-year lows two months ago, some investors decided to drop the bag for Ann. Joe Saluzzi, Themis Trading LLC Securities and Exchange manager, said that "investors have been tired and bank stocks have dragged the market", although today is the May option maturity, but there was no significant turnover on the NYSE, with only 1.5 billion shares traded on the New York Stock Exchange.　　The share of the rising stocks in Friday was 1:2 per cent for falling stocks. Insurance stocks become the focus of the market. Hartford Financial Services Group (HIG), Prudential Financial (PRU), Lincoln National (LNC), Allstate (All), Ameriprise (AMP) and principal Financial Group (PFG) and so on received billions of dollars of government rescue funds.　　According to the Wall Street Journal, the U.S. government will inject 22 billion of billions of dollars into U.S. insurance companies based on the "TARP" that was launched last year. Hartford fell back,The closing fell 15 cents, and LINCOLN national fell 12 cents.　　The news that insurers are getting government aid can also be understood to pose a serious threat to the US financial system. The financial sector fell 2.5% per cent, the first in a row. The energy sector has fallen by 2.2% per cent, affected by a sharp fall in oil prices.　　The utility sector has been underperforming all day, with electricity stocks in the sector down 2.7%. General Motors (GM) said in Friday that it would cut the number of U.S. dealers by 1100, and Chrysler announced yesterday that it would reduce its dealer size by One-fourth.　　General Motors fell 5.2%.　　Treasury bond markets fell, with 10-year yields rising from 3.09% in Thursday to 3.14%.　　The U.S. Labor Department reported a 54-year decline in the April CPI, which was hit by a sharp drop in energy prices, and the April US consumer price index was flat last month, falling 0.7% in the past year, the biggest annual decline in 54 years. The fall in consumer prices has raised concerns about deflation in the US. However, after discounting the volatile food and energy prices, the April core consumer price index did not fall. Core CPI climbed 1.9% per cent in the past year, with the quarterly core CPI up 0.3% in April, with tobacco prices soaring 9.3%.　　Excluding tobacco prices, CPI fell 0.1% in April and core CPI rose 0.1%. Inflation was higher than expected in April.　　US economists were generally expected to fall 0.1% in April, while the core index rose 0.2%.　　With consumer prices flat and average hourly rates up 0.1% per cent, real weekly wages rose 0.1% per cent in April, up 2.6% since April 2008.　　Euro-zone GDP tumbled in the first quarter of 4.5% Friday European official economic data show that the eurozone's severe recession in the first quarter of 2009 continued to worsen, with exports plummeting and industrial output tumbling, which has caused the region's economy to shrink in the most dramatic way.　　The 16-member eurozone's first-quarter gross domestic product fell 2.5% from the fourth quarter of 2008, according to a Friday report by Eurostat (EUROSTAT), which fell 4.5% per cent in the first quarter of last year. Recent improvements in the euro zone's PMI and other economic data suggest that the region's economic contraction may have slowed in the second quarter, but that the economic performance in the second quarter is expected to be unsatisfactory, given the very large downturn in the first quarter.　　Some economists point out that while the survey shows a significant decline in industrial output, it has proved too optimistic about the first-quarter economic picture. "All in all, the economic data released today are a timely reminder to me," said Dominic Bryant, an economist at BNP Paribas Domenek., despite some budding economic conditions, they grow on very poor economic soil and may take a long time to blossom.　　"Economists on average expect the eurozone's first-quarter GDP to fall 2.2% from the fourth quarter last year, down 4.1% from a year earlier," he said.　　Eurozone GDP fell by 1.6% in the fourth quarter of 2008.　　According to the Capital Economics, the weighted average GDP figures for eurozone countries show that the region's GDP has never seen such a steep decline as shown in today's report. Daniele Antonucci, European economist at the agency, said, "It is worth noting that the region's biggest economic contraction occurred in the fourth quarter of 2008, before the euro-zone GDP report was released today, when GDP shrank by 1.6% in the quarter," Andonruchi. So today's report highlights the severity of the recession, which has been longer and more severe than the 1974-1975 recession. "Marco Valli, the chief Euro-zone economist at UniCredit, said in a study that the GDP report published by the eurozone statistics bureau today is the first estimate and that the report does not provide much detail, but the main reason for the eurozone's contraction is likely to be a severe decline in investment and exports, In addition, inventories have also dragged down economic growth figures. The euro zone's consumer spending "may only have a relatively small decline," he said.　　"Before the GDP report was published by the euro Area Bureau of Statistics, the economic data released by some Member States had shown that the region's economic contraction was likely to be more severe than expected." Germany, the eurozone's largest economy, reported a contraction of 3.8% in the first quarter, down 6.9% per cent, the biggest annual decline since 1970, after a severe export contraction.　　Economists had been expecting GDP to fall by 3.4% per cent in the first quarter. France is the euro zone's second-largest economy, and its situation is no better than that of Germany. The French report said GDP fell by 1.2% in the first quarter, down 3.2% per cent year-on-year. Italy's GDP fell by 2.4% in the first quarter, down 5.9% year-on-year.　　Earlier this week, Spain reported a 1.8% per cent decline in GDP in the first quarter.　　The German Federal Bureau of Statistics said the main reason for the 3.8% per cent decline in first-quarter GDP was that exports fell more than the decline in imports and the formation of capital formation.　　Germany's households and government spending grew slightly in the first quarter, but the German economy has never relied heavily on consumer spending. The French National Institute of Statistics and Economics (INSEE) said France's capital formation fell 2.3%, falling for the second consecutive quarter, with exports and imports "collapsing" andThe mouth of the chain fell 6%, the import chain down 5.3%.　　As in Germany, household spending in the first quarter of France grew by a small 0.2%. The euro fell sharply after Germany released its first-quarter GDP figures.　　The euro is now down 0.6% against the dollar, at 1.3554.　　The New York Region April manufacturing activity index rebounded to 4.6 in Friday, the regional Fed reported that manufacturing activity in the area has seen its slowest contraction since last August.　　The New York Region fed reported that New York State's May manufacturing activity index rebounded to 4.6, far better than the April-14.7 and March-38.2.　　While 28% per cent of respondents reported continued deterioration in manufacturing, 23% per cent said the manufacturing situation had improved.　　The New Order index in the report fell a few points below 0 per cent, with shipments rising slightly to more than 0 per cent.　　The acceptance price index continued to slide and hit a record low. The New York City's manufacturing activity index, a relatively new economic figure, began to report in 2001.　　The report drew the attention of investors and some economists because it was considered to be the first economic data of the National Factory Survey report released by the Supply Management Association two weeks later.　　In April this year, the Supply Management Association's manufacturing Index (903.802,6.58,0.73%) grew to 40.1%, the highest value since September last year, giving investors a glimpse of the worst of the manufacturing contraction, perhaps already in the past, and the consumer sentiment index rose to 67.9 in May.　　A Friday survey by the University of Michigan and Reuters reported that the U.S. consumer sentiment index rose in early May, very close to what Wall Street analysts expected.　　The consumer sentiment index rose to 67.9 in May from 65.1 in April, before Wall Street economists expected a 68 reading.　　The consumer sentiment index fell to 55.3 last November, a 28-year low. Consumer sentiment readings have continued to rise in part because of increased confidence in the White House's economic policies, a rebound in equities and a lot of people who believe the US economy has bottomed out.　　[Page] U.S. industrial output fell by 0.5% in April, U.S. factories, mines and utilities fell 0.5%, the Fed reported.　　Industrial output has fallen for six consecutive months, with a downward trend in 15 months over the past 16 months. April industrial output fell only slightly better than Wall Street economists had expected.　　Earlier, economists expected April industrial output to fall 0.6%. March industrial output was slightly lower than the initial estimate.　　After the correction, industrial output fell by 1.7% in March, rather than the initial estimate of a 1.5% decline.　　March capacity utilization fell to 69.1%, a record low.　　U.S. industrial output has fallen by 12.5% in the past year, according to Federal Reserve data. The industrial output of each department in April presentsDownward trend, only the value of public utilities has risen.　　Manufacturing output fell 0.3% in April. Consumer goods output remained flat in April, as the growth in consumer durables output was offset by a decline in the output of non-durable goods.　　Consumer output fell by 0.3% in March.　　Auto production rose in April for the third consecutive month, with auto assembly rebounding from the fourth-quarter minimum.　　The index of commercial equipment fell 0.6%, far below the average of 2.75% in the first quarter.　　Construction output fell 1.1% in April, less than 2.9% in March.　　Material output fell 0.7% in April, down 15% in the past year.　　Public utility output climbed 0.4% in April, and electricity and gas facilities increased in value.　　It was also reported that the New York Fed bank announced that manufacturing activity continued to shrink in May, but it fell at a low rate since August last year.　　The decline in industrial output in the second quarter was likely to be less than 23% in the first quarter, according to JPMorgan economists.　　But GM and Chrysler shut down a number of factories, which could put a strain on industrial output. Oil prices in New York fell 3.9% this week, with the 3.9% New York market's main crude oil futures contracts plunging nearly 4%.　　Fears of a rapid recovery in the global economy are on the rise, and economic stagnation means further declines in energy demand. As of Friday 2:30 (Beijing time Saturday 2:30 A.M.), the New York Mercantile Exchange's June oil contract fell 2.28 U.S. dollars, closing at $56.34, or 3.9%. The maximum value of the contract is USD 58.88, with a minimum of USD 56.07.　　The June contract also fell by about 3.9% per cent this week. The International Energy Agency said yesterday that the year-on-year decline in world oil demand is expected to hit a 1981-year high in the year. The IEA expects global demand in 09 to be reduced by 2.6 million barrels/day from 08.　　That figure is 200,000 barrels higher than the IEA's forecast last month.　　The IEA also said the April oil exporting Countries ' organization (OPEC) increased production, the first increase in OPEC in the past eight months. "The continued rise in oil prices has prompted OPEC to increase production in order to gain more from the rise in oil prices, which will cost other oil producers," La Brecte, the German commercial Bank, led by Barbara Barbara Lambrecht, said in a study. They further said: "A further decline in demand and an increase in OPEC supply may explain the problem of oil inventories that have continued to climb until recently." This has strengthened our judgment that the rise in oil prices over the past few weeks has been overdone, and it is expected that oil prices will need to be adjusted to around 55 dollars/barrel in the future. "New York's gold price in the 0.3% New York market, the main gold futures contracts first fell, and eventually a small high, close to a breakthrough of 930 U.S. Dollars/oz." The gold price of this week's dealRose about 1.8%.　　The rise in gold prices today stems from the latest economic data showing a year-on-year increase in core inflation, raising investor concerns about inflation. The Labor Department announced this morning that the core consumer price index (CPI) has grown by 1.9% in the past 12 months. Investors tend to hedge against inflationary risks by buying gold.　　Overall CPI, including energy and food prices, fell 0.7% per cent year-on-year. As of Friday 1:30 (Beijing time Saturday 1:30 A.M.), the June Gold futures contract, which was listed by the Comex department of the New York Mercantile Exchange, rose 2.90 US dollars, closing at $931.30/ounce, or 0.3%. The maximum value of the contract is USD 934.80, with a minimum of USD 924.10.　　Today, the gold price of the trading range is narrow, early plate after a slight rebound, midday disk for a long time in the flat line up and down narrow fluctuations, the tail plate to lay a small rise in the situation. George Gero, a precious metals analyst at RBC Capital Markets, said: "Core inflation data Girot the stability of the gold price and pushed the price up to $930 trillion." "But the rise in gold prices in Friday was limited by the strength of the dollar. In general, the dollar's value will depress the price of gold in dollar terms.　　The dollar has risen markedly against the euro today, with data released earlier showing the German economy falling at a record high of at least 1970 years. European stocks rose in Friday as Europe's stock market closed, Barclays led the banking sector higher.　　But the decline in the sectors of pharmaceuticals and food producers has limited the market's gains. The pan-European Dow Jones Stoxx 600 index (ST:SXXP) rose 0.6% to 202.89, with banks in the index showing strong performance.　　But this week the pan-European Dow Jones Stoxx 600 index fell by about 3%. The French CAC-40 index (fr:1804546) rose 0.4% per cent in the major European markets in Friday, at 3,169.05. Germany's DAX 30 index (dx:1876534) fell 0.2% per cent to 4,731.50.　　The FTSE 100 index (UK:UKX) fell 0.33% per cent to 4,348.11. Germany, the eurozone's largest economy, reported today that gross domestic product shrank by 3.8% in the first quarter, down 6.9% per cent year-on-year, the biggest annual decline since 1970, after a severe export contraction.　　Economists had been expecting GDP to fall by 3.4% per cent in the first quarter. The eurozone's 16-member eurozone first-quarter GDP fell 2.5% from the fourth quarter of 2008, compared with a 4.5% decline in the first quarter of last year, the euro Area Bureau of Statistics said today. But some of the leading economic indicators have improved recently, and investors believe the worst of the eurozone's recession could be driven by governments ' stimulus measuresHas passed. Stephen Taylor, a dolmen stockbrokers institutional analyst, said: "Employment and GDP figures lag behind the index of leading economic indicators." So today the stock market performance is still the sword. "It is widely believed that banking will be one of the most profitable sectors when the economy improves, and the sector has generally rallied in Friday."　　Deutsche Bank rose 3.7%, and SocGen rose 2.6%. Barclays shares rose 5.8% per cent after the company said it had more than one buyer approached the bank to acquire the Barclays Global investors, and whether the ishares deal with CVC Capital changed was not yet certain.　　Barclays Global investors is the asset management arm of Barclays Bank, which reports that the purchase of the sector could be worth as much as $10 billion trillion. Some of the sectors seen as insensitive to economic trends have become the worst performers in the stock market today.　　Novartis, the Swiss food giant, is down 1.2% after a 1.2% drop in the Swiss company, which has dragged down the drug sector. Thales Group, the Air France and defence industry company, fell 0.6% per cent after the company said orders for the first quarter of 2009 had fallen by 24% to 2.25 billion euros; (Ming)