Macro Wrap

• India Inc: GST collections for the month of April stood at Rs 2.37 lakh crore showing a 12.6 per cent year-on-year increase. This is the highest monthly collection so far.

• The DJIA, the S&P500, and the Nasdaq Composite Index rose 0.2%, 0.6%, and 1.5% respectively. Most markets in Europe were closed yesterday, including Germany, due to the Labour Day holiday. The Dollar Index rose 0.8% to 100.25. The US 2Y yield rose nearly 10bp to 3.70% and the 10-year yield gained nearly 6 bps to 4.22%. The UK 10Y yield rose 4bp to 4.48%. Brent crude oil prices extended losses for the fourth straight day by 1.6% yesterday to $62.13, Gold fell 1.5% to $3,239.

• US April ISM manufacturing slipped to 48.7 but beats consensus: 47.9 vs 49 previously. The new orders component rose to 47.2 vs 45.2 previously, the employment component rose to 46.5 vs 44.7 previously, while prices paid rose to 69.8 vs 69.4 previously, the highest since June 2022. Negative for industrial commodities

• US ADP survey showed Private employers added 62,000 jobs in April, sharply lower than expected and March’s +147,000. Education and health services, information, and professional and business services lost jobs, while hiring in other sectors was moderate. The US weekly jobless claims for week-ending 26 April rose to 241,000 (Bloomberg consensus: 223,000) vs 223,000 previously. Sentimentally positive for Gold

• Eurozone’s Q1 GDP beat expectations, Q1 GDP came in better than seen +0.4% q/q (4Q: +0.2% q/q) but the preliminary data for Q2 and the reciprocal tariffs suggests that some weakening is in the offing. Positive for Euro

• Data watch: US will released non-farm payroll for April, consensus for the change in non-farm payrolls is at 138,000 vs 228,000 previously, and the unemployment rate to stay unchanged at 4.2%.