·
In US, the April NFIB Small Business Optimism survey rose to
96.9 vs 95.2 implying business expectations improved last month following the
downshift in Q1. March JOLTS job openings fell marginally to 4.994m (Feb
5.144m), probably reflecting the weakness evident in the labour market that
month. Echoing the deceleration in private consumption during Q1, the NY Fed’s
household debt and credit report showed that growth in household debt was
subdued in the quarter, rising a modest 0.2% or US$24 billion to US$11.8
trillion.
·
Bloomberg news reports that the ECB has agreed to raise the cap
on Greece’s Emergency Liquidity Assistance by EUR1.1 billion to EUR80 billion.
They also report that “a decision on whether to increase the discount on the
collateral posted -- making it harder for banks to get the cash -- could still
be made at next week’s council meeting in Frankfurt”.
·
UK Industrial Production rose by a better-than-expected 0.5%
m/m, with manufacturing output rising 0.4% m/m.
·
In absence of a broad USD trend individual stories dominated in
the currency market. The AUD found solid support after the Budget, while the
GBP rallied after more strong data there.
·
Bond yields were higher in Europe, but lower US Treasury bond
yield levels on screens in the morning session mask significant overnight
volatility.
·
Equity markets were downing in a sea of red ink, with all major
US markets closing
lower.
·
Crude oil prices firmed. Brent moved above the critical
USD65/bbl level, while US WTI also rose above the USD60/bbl level of
resistance. OPEC raised its 2015 consumption estimate in its monthly report,
while the EIA suggested US shale output has fallen about 1% in May and declines
will gather momentum in June, supporting sentiment.
Gold led the precious metals complex higher, in choppy trading. Gold's
strength was supported by weaker equities in Europe and the US and a steadily
stronger Euro.
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