Daily Insights

China, Eurozone PMIs ease global growth fears. Services data out of China and the Eurozone allayed some jitters after March PMIs for both were better than expected. China’s reading came in at its highest level in over a year, bouncing off four month lows on stronger demand, new state policies, and improved access to financing. Eurozone services data showed improvement in the region’s four largest economies, however, continued sluggishness in manufacturing activity kept the regional composite measure from topping the prior month level, and the data indicate fourth quarter gross domestic product (GDP) growth will likely come in at an anemic 0.2% (not annualized). U.S. services data is due out later this morning with consensus estimates pointing to a flat reading month over month, though activity remains firmly in expansionary territory.

ADP payrolls hit lowest level since September 2017. A precursor to Friday’s nonfarm payrolls, ADP’s employment reportshowed private businesses added 129K jobs last month, below consensus estimates for +165K and February’s upwardly revised +197K. Construction and manufacturing were among the groups showing a month-over-month drop in hiring, while the services sector continued to expand. Despite the decline, overall trends remain positive and the recent data are consistent with a healthy economy.

Stocks’ winning streak. What a start to 2019! The S&P 500 Index notched its best quarterly gain in over 20 years, and rose in each of the past three months for the first time since 2013. Stocks’ first-quarter strength could bode well for the rest of the year, as we’ll highlight later today on the LPL Research blog.

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Wednesday

• ADP Employment Report (Mar)
• Markit US Services PMI (Mar)
• Markit US Composite PMI (Mar)
• ISM Non-Manufacturing Index (Mar)
• Markit/BME Germany Composite PMI (Mar)
• Markit Eurozone Composite PMI (Mar)
• Eurozone Retail Sales (Feb)

Thursday

• Initial Jobless Claims (Mar 30)

Friday

• Nonfarm Payrolls (Mar)
• Unemployment Rate (Mar)
• Japan Leading Index (Preliminary Feb)
• Japan Coincident Index (Preliminary, Feb)
• Germany Industrial Production (Feb)

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Index data obtained via FactSet

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