Key benchmark indices surged on the first trading session of the week after a manufacturing sector survey showed that production volumes at Indian manufacturers continued to rise in the month just gone by. The barometer index, the S&P BSE Sensex, attained one-week closing high. The 50-unit CNX Nifty attained its highest level in more than a week. The Sensex garnered 467.51 points or 1.93%, up close to 420 points from the day's low and off about 25 points from the day's high. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The BSE Mid-Cap and the BSE Small-Cap indices rose more than 2% each, with both these indices outperforming the Sensex. The market sentiment was boosted by data showing that foreign funds made heavy purchases of Indian stocks on Friday, 30 May 2014. Gains in European and Asian stocks also boosted sentiment on the domestic bourses.
The Sensex has gained 3,514.17 points or 16.59% in calendar year 2014 so far (till 2 June 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 7,236.14 points or 41.47%. From a record high of 25,375.63 on 16 May 2014, the Sensex has fallen 690.78 points or 2.72%.
Coming back to today's trade, Maruti Suzuki India rose after the company reported strong sales in May. Hero MotoCorp gained after the company reported good sales figures in May 2014. Bajaj Auto rose after the company reported a small increase in sales volume for the month just gone by. Shares of companies involved in life insurance business edged higher on reports the finance ministry could recommend an increase in the limit on foreign direct investment (FDI) in insurance sector to 49% from 26%.
Key benchmark indices edged higher amid initial volatility. Key benchmark indices retained positive zone in morning trade. The Sensex extended gains and hit fresh intraday high in mid-morning trade after a manufacturing sector survey showed that production volumes at Indian manufacturers continued to rise in the month just gone by. Key benchmark indices further extended gains and hit fresh intraday high in early afternoon trade. Key benchmark indices extended gains in afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost a week. Firmness continued on the bourses in mid-afternoon. Key benchmark indices extended gains in late trade.
The market sentiment was boosted by data showing that foreign funds made heavy purchases of Indian stocks on Friday, 30 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 3101.20 crore from the secondary equity markets on Friday, 30 May 2014, as per the data from the Securities & Exchange Board of India (Sebi).
The S&P BSE Sensex garnered 467.51 points or 1.93% to settle at 24,684.85, its highest closing level since 26 May 2014. The index jumped 491.75 points at the day's high of 24,709.09 in late trade. The index gained 52.86 points at the day's low of 24,270.20 in early trade.
The CNX Nifty garnered 132.55 points or 1.83% to settle at 7,362.50, its highest closing level since 23 May 2014. The index hit a high of 7,368.60 and a low of 7,239.50 in intraday trade.
The BSE Mid-Cap index garnered 183.30 points or 2.16% to settle at 8,650.52. The BSE Small-Cap index garnered 181.19 points or 2.01% to settle at 9,196.92. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3597 crore, lower than Rs 10538.57 crore on Friday, 30 May 2014.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. On BSE, 2,001 shares rose and 977 shares fell. A total of 109 shares were unchanged.
From 30-share Sensex pack, 21 rose and rest fell.
Cement stocks advanced. ACC (3.31%), Ambuja Cements (up 2.81%), Shree Cement (up 0.1%) and UltraTech Cements (up 3.24%) gained.
IndusInd Bank rose 3.14%. The bank during market hours today, 2 June 2014, said it has launched a new customer-centric service titled Video Branch. This innovative offering (first-of-its-kind initiative in the banking industry) enables the customers to do a video conference with the bank staff in order to avail various services offered by bank.
Most realty stocks gained. Unitech (up 3.06%), D B Realty (up 3.42%), Housing Development & Infrastructure (up 4.52%) and Sobha Developers (up 1.29%) gained. DLF fell 0.36%.
Coal India gained 0.59%. The company said during market hours today, 2 June 2014, that coal production of the company and its subsidiaries was 94% of the targeted production at 36.27 million tonnes in May 2014. The coal offtake of the company and its subsidiaries was 93% of targeted offtake at 40.71 million tonnes in May 2104.
Coal production during April-May 2014 was 97% of the targeted production at 73.79 lakh tonnes. The growth in coal production was 5% year-on-year during April-May 2014. Coal offtake during April-May 2014 was 91% of the targeted offtake at 81.25 lakh tonnes. The growth in coal offtake was 4% year-on-year during April-May 2014.
Shares of Tata Steel and Steel Authority of India surged on reports the two steel makers have restarted most of their iron ore mines in Odisha state after getting new permits from the Odisha state government. Steel Authority of India (Sail) jumped 5.43% to Rs 92.25.
Tata Steel jumped 4.42% to Rs 496 after hitting 52-week high of Rs 496 in intraday trade.
A total of eight mines in Odisha, which have an annual combined capacity of 20 million metric tons and received new mining leases, have resumed ore extraction, according to reports. These include four mines of Tata Steel, three of Steel Authority and one belonging to Orissa Mining Corp.
The Supreme Court on 16 May 2014 ordered suspension of mining at 26 quarries in Odisha, pending renewal of extraction leases from the state government. The court gave six months to the state to dispose all applications for renewing permits and asked it to first process the applications for mines owned by steel makers.
Shares of other steel makers also edged higher. Bhushan Steel (up 0.97%), Jindal Steel & Power (up 4.97%) and JSW Steel (up 1.56%) gained.
Shares of metal companies were in demand after strong Chinese data. Hindustan Zinc (up 1.3%), Hindalco Industries (up 1.69%) and Sesa Sterlite (up 0.01%), edged higher. China is the world's largest consumer of copper and aluminum.
NMDC rose 3.61% on good Q4 result. The company's net profit surged 33.93% to Rs 1962.14 crore on 17.6% growth in total income to Rs 4412.03 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 30 May 2014.
NMDC's net profit rose 1.22% to Rs 6420.08 crore on 9.34% growth in total income to Rs 14152.72 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On consolidated basis, NMDC's net profit rose 0.58% to Rs 6370.98 crore on 9.3% growth in total income to Rs 14147.31 crore in FY 2014 over FY 2013.
PSU OMCs gained as diesel prices were on Saturday, 31 May 2014, hiked by 50 paise a litre, excluding state levies, the second increase in rates three weeks. The revised prices were effective from Sunday, 1 June 2014. BPCL (up 6.41%), HPCL (up 5.35%) and Indian Oil Corporation (IOC) (up 0.6%) gained.
PSU OMCs suffer revenue loss on domestic sale of diesel, LPG (cooking gas) and kerosene at a controlled price. The government decontrolled pricing of petrol in 2010.
The under-recovery on High Speed Diesel (HSD) applicable for first fortnight of June effective 2 June 2014 will go down to Rs 2.80 per litre. This was Rs 4.41 per litre during the second fortnight of May 2014 w.e.f. 16 May 2014. In the case of PDS Kerosene, the under-recovery for the first fortnight of June 2014 will be Rs 32.87 per litre, lower than Rs 33.84 per litre in the preceding fortnight. In case of domestic LPG, the under-recovery for the first fortnight of June 2014 will be Rs 432.71 per cylinder, lower than Rs 449.13 per cylinder in the preceding fortnight. The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has reviewed international prices of crude oil and petroleum products during the 2nd fortnight of May 2014.
Oil Marketing Companies (OMCs), effective from 2nd June 2014, are now incurring combined daily under-recovery of about Rs 262 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. This is less than Rs 318 crore daily under-recoveries during the preceding fortnight.
L&T surged 6.4% to Rs 1,648 on strong Q4 result. The stock hit record high of Rs 1,650 in intraday trade. The scrip hit low of Rs 1,603. The company's net profit surged 69% to Rs 2723.48 crore on 11% growth in gross revenue to Rs 20229 crore in Q4 March 2014 over Q4 March 2013. The strong growth in bottom-line can be explained by strong operating performance and higher extraordinary income. The result was announced after market hours on Friday, 30 May 2014.
Consequent to completion of demerger of hydro carbon business to wholly owned subsidiary effective from 1 April 2013 in pursuant to approval of said demerger scheme by Bombay High Court vide its order dated 20 December 2013, the numbers of corresponding previous quarter/nine month and FY 2013 figures were restated and the growth figures are in comparison to restated P&L figures
The growth in L&T's top line during Q4 March 2014 was due to progress in various jobs under execution. The international revenue rose 25% to Rs 2966 crore in Q4 March 2014 over Q4 March 2013. International revenue constituted 15% of total revenue in Q4 March 2014.
L&T's order intake during the quarter was steady at Rs 26737 crore. International order inflow during the quarter at Rs 11389 crore constituted 43% of the total order inflow for the quarter.
International revenue rose 22% to Rs 9129 crore in FY 2014 over FY 2013. It constituted 16% of the total revenue in FY 2014.
The company successfully secured fresh orders worth Rs 94108 crore in FY 2014, registering a significant growth 15% YoY, on a large base despite a sluggish economic environment during 2013-14. The international order inflow during the year at Rs 30752 crore grew more than 3 times on a YoY basis, constituting 33% of the total order inflow. Major orders during the year were procured by the infrastructure segment, L&T said in a statement.
The order book at Rs 162952 crore as at 31 March 2014, grew 13% on YoY basis. International order book constituted 21% of the total order book, L&T said in a statement.
With regard to future business outlook, L&T said it has weathered the challenging times of the past few years due to its inherent capabilities and strong balance sheet. Being well positioned to tap the emerging opportunities in its core businesses, the company looks forward to a period of renewed investment momentum and sustainable growth. Given its large order book, the company is optimistic to maintain its growth momentum in the medium term, as domestic and global economic environment improves, L&T said in a statement.
Telecom stocks gained. Bharti Airtel (up 5.53%), Idea Cellular (up 1.75%), MTNL (up 6.92%) Tata Teleservices (Maharashtra) (up 2.72%) and Reliance Communications (up 1.98%) gained.
Tata Power Company rose 2.83%. The company during market hours today, 2 June 2014, said that its subsidiary, Tata Power Renewable Energy (TPREL), has successfully commissioned its 25 megawatts (MW) (28.8 MWp) solar photovoltaic (PV) power project. The solar plant is expected to generate approximately 46 MU per year which will enable Tata Power meet its Solar Renewable Purchase Obligations (RPO).
Infosys rose 1.92%. The company on Saturday, 31 May 2014, said that the company's search for its new Chief Executive Officer and Managing Director continues and no decision has been taken in this regard as of date. Any other reports or rumours are merely speculations at this point, Infosys said. Once the search is complete, the company will issue a formal notification on the new appointee, Infosys said in a statement.
Wipro dropped 0.83%. DEN Networks declined 1.27%. Wipro has bagged a managed services contract from DEN Networks to revolutionise customer experience for the cable and broadband businesses of DEN Networks. The alliance will help in accelerating DEN Networks' evolution from being a B2B organisation to a B2C organisation, DEN Networks said in a statement issued today, 2 June 2014.
The strategic partnership is aimed at empowering DEN Networks' customers with seamless connectivity and integration. Through this decade-long alliance, DEN Networks will be able to provide its customers, local cable operators (LCOs) and partners with real time efficient services, thereby ensuring continuous engagement and zero downtime. The initiative will also help DEN Networks to streamline the deployment of its next generation services and provide quicker service activation, accurate rating and billing, and excellent customer service.
Most auto stocks rose after announcing monthly sales volume data.
Maruti Suzuki India rose 3.06% after the company reported strong sales in May. The company's total sales rose 19.2% to 1 lakh units in May 2014 over May 2013. Domestic sales rose 16.4% to 90,560 units in May 2014 over May 2013. Exports jumped 51.2% to 10,365 units in May 2014 over May 2013.
Mahindra & Mahindra (M&M) gained 0.93%. The company announced on 1 June 2014 that its auto sales numbers stood at 37,869 units in May 2014. Domestic sales fell 15.68% to 35,499 units in May 2014 over May 2013. Exports rose 75% to 2,370 units in May 2014 over May 2013. The Passenger Vehicles segment (which includes UVs and the Verito) sold 18,085 units in May 2014, as against 22,244 units during May 2013. The 4-wheelers commercial segment sold 12,836 units, while the 3-wheelers segment clocked 3,732 units in May 2014.
Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, M&M said, "Auto sales continue to remain subdued for many players, at the back of yet another challenging month for the industry. Post the electoral mandate, we expect to see improved sentiments resulting in a better economic situation which we hope will lead to a gradual increase in demand. We are happy to have achieved a growth of 75% in our export volumes during May".
Mahindra & Mahindra's Farm Equipment Sector (FES), maintained its leadership position in the Indian tractor industry during May 2014. Total sales rose 1% to 23,940 units in May 2014 over May 2013. Domestic sales rose 3% to 23,132 units in May 2014 over May 2013. Exports fell 30% to 808 units in May 2014 over May 2013.
Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, Mahindra & Mahindra said, "We have registered a sale of 23132 tractor units in the domestic market during May 2014. We do hope that the onset of monsoon would add buoyancy to the farmers' morale and lead to growth in the agricultural sector".
Mahindra Two Wheelers (MTWL), on 1 June 2014 announced its sales numbers which stood at 16,824 units during May 2014. The company's domestic sales rose 131% at 15878 units in May 2014 over May 2013. Exports for the month stood at 946 units.
Speaking on the monthly performance, Viren Popli, Chief of Operations, Mahindra Two Wheelers said, We are happy to maintain the demand momentum of our 2-wheeler division during May 2014 with a growth of 131% in the domestic market, which is indicative of the growing acceptance of our product portfolio especially our flagship brand, the Centuro. With a positive upsurge in socio-economic sentiments and on the back of improved demand, we hope to remain on the growth trajectory going ahead.
Tata Motors gained 1.58%. Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles fell 24% to 37,525 vehicles in May 2014 over May 2013. The company's domestic sales of Tata commercial and passenger vehicles fell 24% to 34,334 units in May 2014 over May 2013.
The company's sales of commercial vehicles fell 27% to 25,104 units in May 2014 over May 2013. The company's sales from exports fell 18% to 3,191 units in May 2014 over May 2013.
Ashok Leyland gained 1.86%.
Hero MotoCorp gained 1.68% after the company reported good sales figures in May 2014. The company said on Sunday, 1 June 2014, its sales rose 8% to 6.02 lakh units in May 2014 over May 2013.
Bajaj Auto rose after the company reported a small increase in sales volume for the month just gone by. The stock was up 1.12%. The company's total sales rose 4% to 3.51 lakh units in May 2014 over May 2013. Motorcycles sales rose 3% to 3.13 lakh units in May 2014 over May 2013. Commercial vehicles sales rose 11% to 38,416 units in May 2014 over May 2013. Exports jumped 40% to 1.56 lakh units in May 2014 over May 2013.
TVS Motor Company shed 0.46%. The company said during market hours that its total sales rose 27% to 2.1 lakh units in May 2014 over May 2013. Exports rose 42% to 34,623 units in May 2014 over May 2013. Total two wheeler sales rose 26% to 2.01 lakh units in May 2014 over May 2013. Three wheeler sales rose 56% to 9,059 units in May 2014 over May 2013.
Shares of companies involved in life insurance business edged higher on reports the finance ministry could recommend an increase in the limit on foreign direct investment (FDI) in insurance sector to 49% from 26%. The finance ministry is likely to propose capping of voting rights for foreign investors so as to ensure that the control of the critical sector involving lifetime's savings of a large number of people does not pass into foreign hands, reports suggest. The government will also discuss the feasibility of allowing 49% foreign investment in the sector with FDI retained at 26% and rest through foreign institutional investors (FII), reports suggest. Reliance Capital (up 11.19%), Max India (up 11.02%), Bajaj Finserv (up 2.63%), HDFC (up 2.31%), ICICI Bank (up 2.8%) and Aditya Birla Nuvo (up 4.39%) gained.
Jyoti Structures fell by maximum permissible 10% lower circuit at Rs 54.90 on BSE after the company reported a net loss of Rs 12.53 crore in Q4 March 2014 as compared to net profit of Rs 22.20 crore in Q4 March 2013. The Q4 result was announced after market hours on Friday, 30 May 2014. Jyoti Structures' total income from operations (net) rose 39.33% to Rs 1307.62 crore in Q4 March 2014 over Q4 March 2013.
Markit Economics today, 2 June 2014, said that the HSBC India Manufacturing PMI for May 2014 indicated that production volumes at Indian manufacturers continued to rise. Growth of both total new orders and new export business accelerated over the month, leading to further job creation across the sector, Markit Economics said. Up marginally from 51.3 in April to 51.4 in May, the seasonally adjusted HSBC India Purchasing Managers' Index (PMI) pointed to a slight improvement in operating conditions and one that was weaker than the series average, Markit Economics said. Output rose for the seventh consecutive month in May. That said, the rate of expansion was unchanged from the modest pace registered in April. Panellists highlighted stronger increases in new orders, although there were mentions that growth was stymied by power cuts and the elections. The latest rise in production was broad-based by sector, with the sharpest expansion signalled by consumer goods producers.
May data highlighted further rises in incoming new work, marking a seven-month sequence of expansion. Moreover, the pace of increase accelerated to the quickest since February. Those survey respondents reporting higher new orders commented on the signing of new contracts and improved demand from both domestic and foreign clients. Growth of order book volumes was registered across the three broad areas of the manufacturing economy, led by consumer goods producers.
New orders from abroad also increased during May, thereby stretching the current period of expansion to eight months. New export business rose at a solid rate that was quicker than in April. Surveyed firms reported having benefited from favourable exchange rates. Overseas demand improved in two of the three sub-categories, the exception being investment goods.
Staffing levels were raised in May, amid evidence of increased production requirements. Employment growth has maintained a broadly steady trend pace in the current eight-month expansionary sequence. All three monitored sub-sectors registered higher workforce numbers.
Indian manufacturers indicated that purchasing activity increased further in May. Where input buying rose, this was associated with new order growth. Nonetheless, the rate of expansion was only slight and moderated since the previous month. Growth of quantity of purchases was noted across the three market groups.
Input costs continued to rise in May, albeit at the weakest rate in one year. There were reports of higher prices paid for some raw materials, although a number of panellists reported successful price negotiations with suppliers. Concurrently, output charges increased further. The rate of charge inflation was, however, marginal and weaker than the series average.
While stocks of purchases were broadly unchanged, post -production inventories increased in May. Meanwhile, outstanding business rose further during the latest month, with monitored firms reporting power outages.
Commenting on the India Manufacturing PMI survey, Frederic Neumann, Co-Head of Asian Economic Research at HSBC said: "The momentum in the manufacturing sector improved at the margin, thanks to higher domestic and export order flows. However, output growth held steady as frequent power cuts forced firms to accumulate backlogs at a faster pace. Encouragingly, input price pressures eased further, but with output prices still rising the RBI cannot take down its inflation guards".
India's gross domestic product (GDP) rose at steady pace of 4.6% in Q4 March 2014 same as in the previous quarter. The GDP growth rose to 4.7% in the fiscal year ended 31 March 2014 (FY 2014) from 4.5% in FY 2013, but remained below the advances estimate of 4.9% released in February 2014. The 'agriculture, forestry and fishing' sector has shown a growth rate of 4.7% in FY 2014, as against the growth rate of 4.6% in the Advance Estimates.
Fiscal deficit has declined to 4.5% of GDP in FY 2014 against 4.8% of budget estimates in February 2014 and 4.6% of revised estimates in February 2014. The fiscal deficit has also declined from 4.9% of GDP in FY 2013.
The Prime Minister's Office (PMO) on Saturday, 31 May 2014, announced that Prime Minister Narendra Modi has decided to abolish all the existing nine Empowered Group of Ministers (EGoMs) and twenty-one Groups of Ministers (GoMs). This would expedite the process of decision making and usher in greater accountability in the system, the PMO said in a statement. The Ministries and Departments will now process the issues pending before the EGoMs and GoMs and take appropriate decisions at the level of Ministries and Departments itself, the PMO said. Wherever the Ministries face any difficulties, the Cabinet Secretariat and the Prime Minister's Office will facilitate the decision making process, the PMO said.
Finance minister Arun Jaitley vowed on Sunday, 1 June 2014, to uphold fiscal discipline, despite pressure on public finances from figures showing the economy grew by less than 5% in the fiscal year just ended. In a post on his Facebook page, Jaitley said pulling India out of its current economic malaise would involve fiscal rectitude as a combination of monetary and fiscal policy. Slower GDP growth will imply lower tax buoyancy and a higher fiscal deficit, Jaitley said. "We must move towards an era of fiscal discipline where we can reduce the fiscal deficit, contain inflation and improve upon our growth rates", Jaitley said. Jaitley did not name any deficit numbers, but said he would target fiscal discipline in the near term so as to maximise India's growth potential over the longer run. "We must commit ourselves to this discipline. Short term disciplining till we reverse the present trend will give us long term benefits," he wrote.
The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review tomorrow, 3 June 2014, as the central bank waits for further proof that inflation is under control. While high inflation rates have come down in recent months, the central bank is waiting to see if they will flare up again. The RBI has said it wants the consumer price index inflation rate to cool to 8% by January and further to 6% a year after that. The central bank will want to see if the crucial monsoon rains this year will exacerbate or ease food price inflation. The RBI left the repo rate unchanged at 8% after a monetary policy review on 1 April 2014 as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
European shares edged higher on Monday, 2 June 2014, as a report showed that Chinese manufacturing expanded at the fastest pace since December. Key benchmark indices in Germany, France and UK were up by 0.07% to 0.27%.
Manufacturing in the euro area slowed more than initially estimated in May amid weakness in France, adding to evidence of the region's uneven recovery as the European Central Bank weighs more stimulus to shore up growth and inflation. A Purchasing Managers' Index fell to 52.2 last month from 53.4, below a May 22 preliminary reading of 52.5, London-based Markit Economics said today. The index has held above the 50 mark, which separates growth from contraction, for 11 months. Growth in new orders eased, according to the report.
UK manufacturing maintained its momentum last month as improving global demand boosted orders at factories for a 15th straight month. Markit Economics said its industry index was at 57 in May after a reading of 57.3 in April. While a gauge of new orders slipped to 59.4 from 59.9, it remained above the 50 level that signifies growth, and Markit said its survey indicates quarterly manufacturing growth of almost 1.5%
There are expectations that the European Central Bank (ECB) will announce new stimulus measures when the Governing Council of the ECB holds a monthly meeting on euro area interest rates on Thursday, 5 June 2014.
Bank of England's Monetary Policy Committee will probably keep its benchmark interest rate at a record-low 0.5% and leave its bond-purchase program unchanged at a monthly meeting on interest rates in UK on Thursday, 5 June 2014.
Asian stocks advanced on Monday, 2 June 2014, after a gauge of China's manufacturing expanded at the fastest pace this year in May. Key benchmark indices in Indonesia, Japan, Singapore and South Korea were up 0.19% to 2.07%. Stock markets in China, Hong Kong and New Zealand were closed for holiday.
China's Purchasing Managers' Index increased to 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing said on Sunday, while authorities reduced some lenders' reserve requirement ratios as the government acts to support growth in the world's second-biggest economy.
Trading in US index futures indicated that the Dow Jones Industries Average could gain 21 points at the opening bell on Monday, 2 June 2014. The Dow and the S&P 500 eked out small gains on Friday, 30 May 2014. The Nasdaq Composite Index registered small losses. On the economic front, the Commerce Department reported US consumer spending fell 0.1% in April from a month earlier. April personal income rose 0.3%. The price index for personal consumption expenditureswhich is the Federal Reserve's preferred gauge of inflationrose 0.2% in April. The Thomson Reuters and University of Michigan's consumer-sentiment index for May showed a final reading of 81.9, up from a preliminary 81.8.
The influential US nonfarm payroll data for May 2014 is due for release on Friday, 6 June 2014.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
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