US Equities back to square one
The US markets saw their best rally in month during the early part of last week, with the S&P500 Index closing at record levels for two consecutive days. However, the gains were short-lived and the index closed unchanged for the week with investors' sentiments mixed. Economic data last week was also varied, with reports showing that retail sales last month were slowing, while manufacturing and consumer confidence also declined. However, April's home construction jumped by the most in five months.
 
FOMC minutes to be released
This Wednesday, investors can look out for minutes from the Federal Open Market Committee meeting in April. Previously on 30 April, the Fed announced a cut in bond buying for the fourth consecutive meeting and on a separate occasion, Fed Chairman Janet Yellen said that the central bank will probably end bond buying in the fall if the labour market continues to improve. 
 
House debates on defense spending
In addition to the release of the FOMC minutes, the House will debate on the annual defense policy bill, which is for authorizing $496 bil in discretionary spending for the fiscal year ending in Oct and another $79.4 bil for war operations. According to the World Bank, the US defense spending to GDP is one of the highest percentages in the world. This means that the rate of growth in the US economy is more sensitive to defense spending when compared to most countries. Any reductions in defense spending are expected to have a larger impact on US economic growth.
 
US reports housing data this week
Towards the end of the week, the US will be announcing existing home sales and new home sales on Thursday and Friday respectively. According to the Bloomberg survey, sales of previously-owned homes in April could climb to the highest level of the year while new home sales are expected to increase for the first time in three months, along with an easing in mortgage rates as well as an improved labour market. 
 
The US is not the only country reporting important data, and closer to home, the HSBC and Markit is scheduled to announce a preliminary reading of their China manufacturing purchasing managers' index for May. Economists are expecting a reading of 48.3. 

Economic data to look out for this week:
19 May: HK unemployment rate
20 May: SG GDP
22 May: Minutes of April’s FOMC meeting, US Existing home sales, China PMI
23 May: US new home sales