Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
US manufacturers’ orders, inventories and shipments show that manufacturing activity in the country continues to decline, albeit at a slower pace. The US factory orders dropped 1 percent in May after gaining in the earlier two months, according to the Commerce Department.
The May data came in slightly weaker than market projections of 0.8 percent. A drop of 2.3 percent in bookings for durable goods mainly pulled the headline figure down. Defense-related aircraft orders dropped 35.3 percent, standing out in the durable sector. However, other areas also registered weak growth. Durable orders, excluding transportation dropped 0.3 percent in May.
Overall, durable orders have moved up and down from month-to-month; however, they have not shown much of a net change since the end of 2014, noted Daiwa Capital Markets in a research report. In the past year, durable orders, excluding transportation, have drifted lower. Nondefense capital goods orders, other than aircraft, have also moved downwards, deteriorating further by falling 0.4 percent in May.
Meanwhile, nondurable goods’ orders grew 0.3 percent in May. Orders for coal and petroleum products climbed 2.1 percent. The coal and petroleum series accounted for most of the rise in nondurable goods orders.
The change in the petroleum and coal category is expected to have been driven by higher prices. Orders excluding coal and petroleum remain quite the same. Nondurable orders excluding petroleum and coal indicated a hint of revival last month; however, a 0.2 percent downward revision dampened the rebound, added Daiwa Capital Markets.
The trend seen in nondurable orders excluding coal and petroleum is flat. Given that new orders are showing slight change, unfilled orders were also weak, growing 0.2 percent. But backlogs increased 0.6 percent. Meanwhile, inventories at the manufacturing level declined 0.1 percent, continuing with the downtrend that started at the end of 2014. However, the pace of drop is decelerating.
