Good Morning ,
– EURUSD continues to hold above the 22 months low overnight, as the EU leader
summit didn’t offer any immediate solution to all the new demands from France
or any new insight on Greece. Commodity- and EMG didn’t recover either.
– Stocks: Nikkei -0.27 %, Hang Seng -0.45 %, Shanghai Composite -0.32 %,
Dow Jones -0.05 %, S+P500 +0.17 %
– European leaders clashed over joint debt sales as they called on Greece to
stick with the budget cuts needed to stay in the euro and offered no
immediate relief for recession-wracked Spain.
– “We had a not unheated discussion on euro bonds,” Luxembourg Prime Minister
Jean-Claude Juncker told reporters. Joint borrowing “didn’t find much
support, particularly in the German speaking area but found a certain
enthusiasm in the French speaking area,” he said.
– Spanish Prime Minister Mariano Rajoy called on the European Central Bank to
act to bring down rising borrowing costs in some of the 17 euro countries.
“If public debt isn’t sustainable, we have a problem,” he said after a
meeting of European Union leaders in Brussels. “I insist it is up to the ECB
to take this decision that it has already taken in the past.”
– China’s factories faltered in May as export orders fell to two month lows, a
private sector survey showed on Thursday, suggesting surprise weakness in
April’s hard economic data persists even as policymakers seek to shore up
growth.
– China Data Recap Period Survey Actual Prior
* HSBC Flash PMI Manufacturing May – 48.7 49.3
– Japan’s corporate mood picked up slightly in May and is seen improving in the
months ahead as the economy recovers from the damage caused by last year’s
earthquake, a Reuters poll showed, although worries about Europe’s debt
crisis and a slowdown in the Chinese economy lurk.
Details Reuters Tankan:
* Manufacturers sentiment index +2 in May, seen +8 in August
* Non-manufacturers index +11 in May, seen +18 in August
– Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the
Fed probably can’t repair all the damage to U.S. employment from the credit
crisis and fiscal policy could help to revive the job market.
– Federal Reserve Bank of St. Louis President James Bullard said an exit by
Greece from the euro zone would probably not cause a big setback for the U.S.
or European economies, Reuters reported.
– Australia Data Recap Period Survey Actual Prior
* CBAHIA House Affordability Q1 – 61.8 58.5
– The Australian dollar, already struggling after sharp falls to six-month
lows, faces a further test over Thursday and Friday with redemptions of
around A$600 million of uridashi – foreign currency bonds sold in Japan
primarily to households – due and no guarantee that the money will be
re-invested. And far more redemptions lie ahead. Over the second half of
2012, around A$12 billion of uridashi will be redeemed, with A$8 billion
alone in the fourth quarter. Between June 2012 and July 2013, the market is
looking at a total of A$20 billion, figures from Westpac Bank showed/Reuters.
– New Zealand Data Recap Period Survey Actual Prior Revised
* Trade Balance Apr 400m 335m 134m 186m
* Exports Apr 4.10b 3.89b 4.22b 4.21b
* Imports Apr 3.70b 3.53b 4.08b 4.02b
– “Though moderate by historical standards, New Zealand’s growth outlook is
stronger over the next few years than forecast for the euro area, the United
Kingdom, the United States and Canada,” New Zealand’s Finance Minister Bill
English said.
– 1430 US Durable Goods Orders Apr
– 1430 US Initial Claims
– 1900 Fed Dudley
– 0800 Germany GDP Q1 F
– 0845 France Own Company Production Outlook May
– 0845 France Production Outlook Indicator May
– 0845 France Business Confidence Indicator May
– 0900 France PMI Manufacturing May
– 0900 France PMI Services May
– 0930 Germany PMI Manufacturing May
– 0930 Germany PMI Services May
– 1000 Eurozone PMI Manufacturing May
– 1000 Eurozone PMI Services May
– 1000 Eurozone PMI Composite May
– 1000 Germany IFO May
– 1115 ECB Nowotny
– 1500 ECB Draghi, BOI Visco
– 1820 ECB Asmussen
– 0800 Switzerland Trade Balance Apr
(CET)
Have a good day !