Shoppers expressed a collective sigh of relief this month with lower gasoline prices serving to push the preliminary University of Michigan (UMich) Consumer Sentiment Index up 4.1 points to 48.9, which exceeded the median estimate of 46 by a hefty margin. It also lifted the gauge above its record-low May reading. The sub-indices for current conditions and future projections both rose to 48.4 and 49.3 from 45.8 and 44.1, helping deliver the upside beat. Survey respondents reported improvements with personal finances and business opportunities; however, overall opinions are still extremely pessimistic as folks worry that the recent broader escalation in costs could prove sticky. Nonetheless, near-term progress pushed 1- and 5-year inflation expectations from 3.9% and 4.8% to 3.4% and 4.6%. It\u2019s important to note that this indicator is highly sensitive to changes in fuel charges.<\/p>\n\n\n\n The S&P 500 is once again nearing fresh records as equity bulls try to prove that the latest pullback was just a slight retreat rather than a deeper correction. Investors are increasingly confident that appetites for ongoing artificial intelligence capital expenditures will remain strong while a two-month low in oil prices has Wall Street convinced that this week\u2019s 4.2% inflation figure will collapse back into the 3s quickly. Taken together, robust speculative enthusiasms paired with a fed funds curve that is turning incrementally dovish has put equities in a good position to keep luring buyers. Meanwhile, the path for interest rate cuts in 2027 is carrying a greater likelihood, as favorable base effects from 2026\u2019s elevated crude costs could drive annualized price pressures to a 2-handle return next year.<\/p>\n\n\n\n After a 10 billion yuan contraction in April, new loans in China grew by 520 billion yuan in May, as the result exceeded the economist consensus estimate for the volume to increase by 450 billion yuan. Total outstanding loans were up 5.5% year over year (y\/y), matching the economist consensus estimate but the pace decelerated from 5.6% in April. The sluggish loan data has resulted primarily from weak consumer demand for both discretionary items and mortgages with the country experiencing a glut of housing that has been causing a decline in property values.<\/p>\n\n\n\n Manufacturers\u2019 first-quarter gate prices jumped 17.7% y\/y in Hong Kong, according to a preliminary version of the Producer Price Index. The y\/y price pressure was spread across manufacturing sectors with the single metal, computer, electronic and optical products, machinery and equipment group having the largest increase of 32.0%. Other categories that became more expensive and the extent of their y\/y price changes were as follows:<\/p>\n\n\n\n Among services, the following categories experienced the stated price increases:<\/p>\n\n\n\n Conversely, prices sank 4.1%, 2.4% and 2.1% for rental of machinery and equipment, warehousing and storage and telecommunications.<\/p>\n\n\n\n The separate sewerage, waste management and remediation activities sector was up 3.8% following the 0.2% ascent in the fourth quarter.<\/p>\n\n\n\n Industrial production in Hong Kong climbed 3.1% y\/y during the first quarter, slowing from 5.8% in the last three months of 2025. Output in the metal, computer, electronic and optical products, machinery and equipment classification jumped 6.6% and the food, beverages and tobacco industry expanded production by 2.1%. Production by the textiles and wearing apparel industry and the separate category of paper products, printing, and reproduction of recorded media industry experienced y\/y slips of 4.7% and 2.6%.<\/p>\n\n\n\n Japan\u2019s April industrial production was 0.5% higher than in March, but the result missed the economist consensus expectation for a 0.8% ascent. Nevertheless, it was a reversal from the 0.4% drop in March and was up 2% y\/y. The growth occurred even as the country\u2019s Production Capacity Index slipped by 0.2% m\/m and 1% y\/y to 94.9. The gauge\u2019s 100 level depicts the long-term capacity utilization average. In related matters, shipments were up 1.3% m\/m and 1.8% y\/y while inventories were down 0.3% m\/m and 5% y\/y.\u00a0<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Enthusiasm about all things tech and AI has equities extending their recovery from yesterday with the major benchmarks, sectors and subcategories participating in the gains. <\/p>\n","protected":false},"author":903,"featured_media":237688,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[4,12711,18,6,8,9,26,3],"tags":[],"contributors-categories":[13760],"class_list":{"0":"post-244178","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-asia","8":"category-ibkr-economic-landscape","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-text-articles","14":"category-traders-insight","15":"contributors-categories-ibkr-macroeconomics"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n![\"Consumer](\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2026\/06\/image-40.png\")
<\/figure>\n\n\n\nStocks Are Near Records Again<\/strong><\/h3>\n\n\n\n
International Roundup<\/strong><\/h2>\n\n\n\n
New Loan Growth in China Turns Positive<\/strong><\/h3>\n\n\n\n
Hong Kong Wholesale Prices Soared in Q1<\/strong><\/h3>\n\n\n\n
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But Industrial Production Eases<\/strong><\/h3>\n\n\n\n
Japan Industrial Production Misses Expectations<\/strong><\/h3>\n\n\n\n