The Official NBS Manufacturing PMI in China was at 50.6 in May 2020, compared with market expectations of 51.0 and 50.8 in the previous month. This was the third straight month of increase in factory activity, as companies resumed operation after strict public health measures to contain the COVID-19 outbreak. There were rises in output (53.2 vs 53.7 in April), new orders (50.9 vs 50.2), and buying levels (50.8 vs 52.0), with export sales falling at a slower rate (35.3 vs 33.5). Meantime, employment shrank for the first time in three months (49.4 vs 50.2), amid a lengthening of supplier's delivery time (50.5 vs 50.1). Prices data showed input cost advanced for the first time since February (51.6 vs 42.5) while selling prices declined much less (48.7 vs 42.2). Looking ahead, business sentiment improved to a four-month high (57.9 vs 54.0).

The Official NBS Non-Manufacturing PMI rose to 53.6 in May 2020 from 53.2 in a month earlier. This was the third straight month of growth in the service sector and the strongest since January. New business grew faster (52.6 vs 52.1 in April) on the back of a slower rate in overseas sales (41.3 vs 35.5), with employment was little-changed (48.5 vs 48.6). Meantime, suppliers' delivery time lengthened further (52.9 vs 51.0). On the price front, input cost increased for the first time in four months (52.0 vs 49.0), while selling prices decreased the least since January (48.6 vs 45.4). Finally, sentiment strengthened noticeably (63.9 vs 60.1).

Macau's economy shrank 48.7 percent year-on-year in the three months to March of 2020, following an 8.1 percent fall in the previous period. It was the fifth consecutive quarter of contraction and the steepest yearly contraction on record since the series began in 2002, mainly due to demand-side shocks caused by the coronavirus pandemic. Regarding net trade, total exports plunged 58.4 percent, with services tumbling 60 percent (from -7.5 percent in Q4) and exports of goods falling 23.5 percent (from -6.2 percent in Q4). Meantime, total imports dropped 30.7 percent. At the same time, private consumption slumped (-15.2 percent vs 2.7 percent in Q4). Also, gross fixed capital formation dropped at a much faster pace (-37.2 percent vs -14.5 percent). On the other hand, government spending continued to expand (5.0 percent vs 1.9 percent).

The Federal Reserve is strongly committed to use its tools to support the US economy as the present coronavirus crisis is an emergency of a nature we haven’t seen before, Fed Chair Powell reiterated during a conversation with Princeton economist Alan Blinder. Fed Chair also added that the central bank is ‘days away’ from making the first loans in the Main Street lending facility programme although it is very challenging because of the wide diversity of companies.

Brazil’s Ibovespa lost 48 points or 0.1% to 86,901, as reopening uncertainty prevails. On the macro side, a new Datafolha poll showed that 68% of Brazilian believe the pandemic will hit the economy in the long run, up from 56% last month. On Thursday, official data showed that tax revenue in Brazil fell by 10% during January-April in comparison to the same months in 2019 and the primary deficit jumped to 2.5% During the week, the Bovespa jumped 5.5%. .

The TSX lost 70 points or 0.5% to 15193 but pared some of the losses after President Trump announced no further trade-specific disputes with China as tensions with Hong Kong intensify. However, relations between China and Canada soared after a court in Canada decided to continue with Huawei CFO Meng Wanzhou extradition case to US. Meanwhile, recent data showed the Canadian economy shrank by 2.1% qoq in Q1, the most since Q1 2009, due to the coronavirus pandemic. On the corporate side, oil companies outperformed as WTI prices booked their best month ever, jumping 87% in May. During the week, the TSX gained 1.9%.

Wall Street closed mixed on Friday with strong gains in tech shares, as equities recovered most of their earlier losses after President Trump said he would take action to eliminate special treatment towards Hong Kong but did not indicate he would pull out of Phase One trade deal with China. On the pandemic side, President Trump announced today that the US will cut ties with the WHO, blaming the organization for low transparency dealing with China despite US-backed funding. On the macro side, oil prices climbed nearly 4% to $35 per barrel in the session to book its best month on record with an 87% gain in May. The Dow Jones lost 18 points or 0.1% to 25,383. In contrast, the S&P 500 gained 15 points or 0.5% to 3044, while the Nasdaq climbed 121 points or 1.3% to 9490. During the month, the Dow and S&P 500 gained over 4% each while the Nasdaq advanced 6.2%.

The Canadian economy shrank 2.1 percent on quarter in the first three months of 2020, after expanding 0.1 percent in the previous period. It was the sharpest contraction since Q1 2009, reflecting measures imposed in March to contain the coronavirus pandemic, including non-essential business closures, border shutdowns, and travel restrictions. Household spending dropped at a record 2.3%, amid job losses, income uncertainty, and limited opportunities to spend. Also, government expenditure fell 1 percent, the sharpest drop since Q1 2013, mainly due to school closures and curtailed government administration. In addition, business investment in machinery and equipment decreased for the 4th straight quarter (-3.5%). Exports fell 3% and imports dropped at a softer 2.8%, as major trading partners implemented similar public health measures. Expressed at an annualized rate, real GDP plunged 8.2 percent, the most since Q1 2009, after an upwardly revised 0.6 percent growth in the prior period.

Personal spending in the US plunged 13.6 percent month-over-month in April of 2020, following a downwardly revised 6.9 percent fall in March and worse than market forecasts of a 12.6 percent drop. It is the biggest decline on record as COVID-19 lockdown measures led to stores closures and restrain Americans from shopping. Real spending decreased 13.2 percent, led by a decrease in food and beverages and spending for health care as well as food services and accommodations.