Economic Overview - The Eurozone economy unexpectedly contracted in May, with the services sector experiencing its worst performance in 16 months, overshadowing a slight improvement in manufacturing [2][3][7] - The Eurozone composite PMI dropped from 50.4 in April to 49.5 in May, below analysts' expectations of 50.6 [3] - The services PMI preliminary value was 48.9, lower than the expected 50.5 and previous value of 50.1, while the manufacturing PMI preliminary value was 49.4, slightly above the expected 49.2 [3] Country-Specific Performance - France's economic activity has contracted for nine consecutive months, with a composite PMI rising only slightly from 47.8 in April to 48, still well below the 50 threshold [6][8] - German PMI data was disappointing, with a decline in the services sector, although government infrastructure reforms may provide future economic support [11] - Southern European countries like Spain showed relatively better performance, with strong tourism demand reported by Ryanair Holdings Plc [14] Sector Analysis - The weak performance of the services sector is a key factor in the overall PMI decline, indicating a challenging road for Eurozone economic recovery [7] - Despite the overall poor data, the manufacturing sector in the Eurozone has shown improvement, marking the first time since the pandemic that manufacturing outperformed services [7] - The manufacturing sector has seen production increase for three consecutive months, with new orders not declining for the first time since April 2022 [7] US Economic Context - In contrast, the US saw better-than-expected performance in May, with Markit manufacturing and services PMIs both indicating expansion [15][18] - The US manufacturing PMI preliminary value was 52.3, the highest in three months, while the services PMI preliminary value was also 52.3, reflecting growth driven by new business [18][21] - The US composite PMI preliminary value was 52.1, indicating a rebound from the lowest point of the year recorded in the previous month [23]

Group 1 - The core viewpoint of the articles indicates that the Eurozone's economic activity is experiencing a contraction, with the composite PMI falling from 50.4 in April to 49.5 in May, below market expectations [1] - The services sector PMI dropped to 48.9, the lowest since January 2024, significantly below the expected 50.3 and previous value of 50.1, indicating weakened demand and declining business confidence [1] - Manufacturing PMI showed signs of stabilization, rising to 49.4, above the previous value of 49.0 and the expected 49.3, with output index remaining in expansion territory at 51.5 for the second consecutive month [1] Group 2 - The analysis highlights that the Eurozone's economic momentum is insufficient, with the services sector's long-standing role as a growth engine being challenged, particularly under the pressures of global trade tensions and policy uncertainties [2] - There is an expectation that the European Central Bank will lower the deposit rate by 25 basis points to 2.00% in the upcoming meeting on June 5, which could further boost business confidence [1]

Core Viewpoint - The article emphasizes the importance of maintaining confidence in investment despite temporary losses, suggesting that setbacks should be viewed as learning opportunities rather than failures [2]. Economic Indicators - The U.S. manufacturing and services Purchasing Managers' Index (PMI) for March is set to be released, with any reading below 50 indicating a contraction in business activity, which could put short-term pressure on the dollar and potentially drive gold prices higher [2]. - The Personal Consumption Expenditures (PCE) price index, a key inflation indicator favored by the Federal Reserve, will also be released. A stronger-than-expected core PCE could support the dollar and lead to a decline in gold prices, while weaker data may alleviate inflation concerns and stabilize gold prices [3]. Gold Market Analysis - Recent market activity shows a significant pullback in gold prices, marking the first occurrence of a bearish candle since the recent upward trend. The price has retreated to the 3000 level, indicating a potential correction phase [5]. - The analysis suggests two scenarios for the gold market: if prices stabilize above 3000, there may be further upward movement; however, if the 3000 support level is breached, deeper declines could follow. The next few trading days are critical, particularly regarding the 3000 support line [5]. Trading Recommendations - Suggested trading strategy includes selling on a rebound near 3025-3030 with a stop loss at 3037 and a target of 3006, as well as buying on a pullback near 3000-3005 with a stop loss at 2993 and a target of 3035 [6].