Wall Street closed lower on Thursday, after a hotter-than-expected PMI survey fueled concerns about prolonged higher interest rates. The Dow Jones plunged by 605 points, marking its worst day of the year. Similarly, the S&P 500 and the Nasdaq Composite retreated from their record highs, closing 0.7% and 0.4% lower, respectively. The flash S&P Global PMIs surpassed expectations, indicating an acceleration in US business activity. This, coupled with persistent inflation, reinforced speculation that the Federal Reserve would maintain its current interest rate stance, pushing Treasury yields higher. Megacap stocks fell, except for Nvidia, which surged 9.3%, surpassing $1,000 per share for the first time. The company reported earnings and revenue that beat estimates, driven by strong demand for AI chips. In contrast, Boeing's shares fell 7.5% after its CFO projected negative free cash flow and no recovery in aircraft deliveries in the second quarter, citing ongoing production challenges.

Sales of new single-family houses in the United States declined 4.7% month-over-month to a seasonally adjusted annualized rate of 634K in April 2024, as high prices and mortgage rates weighed on buyers' affordability. Figures came well below forecasts of 680K, with March data revised down to 665K. Sales sank in the Northeast (-20.9% to 34K), the West (-7.3% to 153K) and the South (-4.8% to 359K), but rose 10% to 88K in the Midwest. The median price of new houses sold in the period was $433,500, while the average sales price was $505,700, both above $417,200 and $500,900 respectively a year earlier. Meanwhile, there were 480K new homes listed for sale during the period, representing about 9.1 months of supply at the latest sales rate.

New home prices in Canada were up 0.2% in April 2024, more than market forecasts of a 0.1% increase, after seeing no change in the prior month. Prices remained unchanged for 15 out of the 27 census metropolitan areas surveyed, decreased in 7 and increased in the remaining 5 areas. The largest monthly increases in April were seen in Edmonton (+1.1%), Calgary (+0.9%) and Vancouver (+0.5%), while the areas that declined the most were Kitchener–Cambridge–Waterloo (-0.4%), Winnipeg (-0.4%), Regina (-0.3%) and Saskatoon (-0.3%). On a yearly basis, new home prices fell by 0.1% in April, marking the 13th consecutive month of deceases, affected by elevated interest rates.

The number of people claiming unemployment benefits in the US fell by 8,000 to 215,000 on the week ending May 18th, below market expectations of 220,000. The claim count was considerably below the elevated levels from earlier in the month but remained firmly above the averages from February to April to consolidate the softer momentum in the US labor market. Additionally, outstanding jobless claims rose by 8,000 from the earlier week to 1,794,000 in the second week of May, the highest level in over one month. The four-week moving average for initial claims, which reduces week-to-week volatility, rose by 1,750 to 219,750. Meanwhile, the non-seasonally-adjusted claim count fell by 5,663 to 192,017, with declines noted in California (-1,936) and Indiana (-1,086).

The central bank of Turkey left its key one-week repo auction rate steady at 50% in May, in line with market expectations. The Board maintains a cautious stance on inflation, monitoring the effects of monetary tightening on loans and demand. Policymakers noted April saw a slight weakening in monthly inflation, but inflationary pressures persist due to high services inflation, geopolitical risks, and food prices. Looking ahead, the board said the tight monetary policy will continue until a significant decline in inflation is achieved. If inflation worsens, policy will be tightened further. Measures will be taken to simplify the macroprudential framework and support monetary transmission, including sterilizing excess liquidity. The Board aims to achieve a 5 percent inflation target in the medium term, making data-driven decisions and using all available tools to ensure price stability.

Negotiated wage growth in the Eurozone surged to 4.69% year-on-year in Q1 2024, up from 4.45% in the previous period and edging closer to the record 4.7% increase in Q3 2023. This has raised concerns about potential inflationary pressures resulting from escalating wages. The mounting costs could ultimately be transferred to consumers, potentially prolonging inflation levels above 2%. The gauge, which analyzes non-harmonized country data to indicate potential pay pressures, is closely watched by ECB policymakers as they consider when to adjust interest rates. Strong wage growth could complicate ECB's decision-making on rate cuts. While a rate cut is likely in June, hopes for another cut in the next months are diminishing.