Australia and Japan rose while most Asian markets were closed due to Labor Day

The Australian central bank is expected to maintain its benchmark interest rate at 3.6% when it announces its decision on Tuesday.

A Reuters poll of 34 economists showed that 26 of them expect the RBA to maintain interest rates at current levels, while the remaining eight expect a rise of 25 basis points.

If the RBA raises interest rates to 3.85%, it will be the highest level since April 2012.

Inflation in Australia – a key data point for the Reserve Bank of Australia – eased to 7% in the first quarter, down from the 7.8% recorded at the end of 2022.

– Lim Hwi Ji

Factory activity in Australia contracted at its fastest pace in 35 months, according to the IMF Private opinion polls from Juno Bank.

The Manufacturing PMI for April held steady at 48, down from March’s number of 49.1, marking the second consecutive month-on-month deterioration.

A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

In its release, the bank said this was due to weaker demand for Australian goods, noting that new orders fell for the fifth consecutive month and at the fastest rate since August 2021.

He also noted that respondents commented on widespread economic weakness, driven in part by higher interest rates.

– Lim Hwi Ji

Factory activity contracted in China in April, contrary to economists’ expectations for growth.

Data from the National Bureau of Statistics revealed that the country’s manufacturing PMI fell to 49.2 from 51.9 in March, below the 51.4 expected by economists.

A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

This also marks the first contraction since December, when the official manufacturing PMI was at 47.

– Lim Hwi Ji

The S&P 500 and MSCI World Index posted gains in April that match their historical pattern.

So where does the market go from here?

CNBC Pro subscribers can read more about how stocks performed in the month of May, according to the date.

– Ganesh Rao

Friday’s PCE data may give the Federal Reserve a reason to raise interest rates again at its meeting next week, said Ryan Belanger, founder and managing director of Claro Advisors.

The data, which was in line with economists’ expectations when looking at the monthly change in the so-called “core” PCE, a key measure of inflation for the central bank. It comes ahead of the federal policy meeting scheduled for next week.

The Fed raised interest rates by 25 basis points, or a quarter of a percentage point, at its most recent meeting. Belanger said he expects it again to the dismay of some market participants.

“Friday’s inflation report gives the Fed an excuse to raise interest rates by 25 basis points at its May meeting, even though there is a growing chorus among investors for the Fed to halt its rate hikes given concerns about the economy,” he said.

– Alex Haring

The core personal consumption expenditures price index, a key measure of inflation for the Federal Reserve, rose as much as economists expected last month.

The core index rose 0.3% in March, which was what economists in a Dow Jones poll had expected.

– Jeff Cox

With 50% of S&P 500 companies now publishing their quarterly results, some stocks — in particular, consumer names — have outperformed the market this week.

The gains came as earnings soared, with several major tech companies and industry giants posting their latest numbers.

Investors are also looking forward to next week’s Federal Reserve announcement. As of Friday afternoon, there was an 86% chance that the central bank would raise interest rates by 25 basis points, according to CME Group. FedWatch a tool.

CNBC Pro subscribers can read more about this week’s best performance, and where the analysts see it, here.

– Hakyung Kim

The First Republic is likely going into receivership, sources say CNBC’s David Faber.

The sources said the FDIC is in talks with other financial firms about potential offerings to First Republic in the event of a takeover of the regional bank by the regulator. However, there is still hope for a rescue deal that does not involve receivership.

The stock, which was mostly flat in early trading, is now down more than 20%. It has lost more than 95% since the beginning of 2023.

Energy and consumer goods stocks have helped the S&P 500 advance this month.

With only the Friday session remaining in the trading month of April, the commodities and energy sectors are both set to post a monthly gain of 3.4%. These jumps make it the best performer among the 11 sectors in the general index this month.

Leading the consumer staples were Molson Coors and Mondelez, which have gained more than 15% and 10%, respectively, since the start of the month. Hess and EQT led the energy rally, each advancing more than 9% on the month.

By comparison, the S&P 500 is poised to end April up 1.3%. Consumer discretionary and industrial stocks weighed on the index with both sectors on track to end the month more than 1% in the red.

– Alex Haring