US Leading Indicators Index likely to show a 0.4% gain - Wells Fargo

On Thursday, in the US, the Leading Indicators Index will be released. Analysts from Wells Fargo, expected it to show a 0.4% gain, in line with consensus. 

Key Quotes: 

“The Leading Economic Index (LEI) has pointed to economic growth continuously in recent months, with April marking its eighth consecutive monthly gain. The measure is now at its highest point of the series, buoyed by continued gains in the stock market and persistently low unemployment claims.”

“The interest rate spread has also been a continued source of strength, most recently accounting for half of April’s monthly growth of 0.32 percent. ISM new orders have also lifted the leading index in 2017, a trend that should continue in May as the measure has kept much of its recent strength.”

“Unemployment claims remain near their lowest levels in more than 40 years, and average weekly claims fell even further in May, suggesting this component will likely boost the index in May as well. The stock market is also likely to provide a boost to the index in May after having a neutral impact in April when the stock market was essentially flat.”