Recap 7-12-12

Main Items:

  • BoJ kept policy broadly unchanged.
  • ECB’s deposit facility usage declined from 809bn to 325bn. However, almost off of the outflow went into the ECB current account, which increased from 74bn to 540bn.
  • US Initial Jobless Claims dropped to 350k off of seasonal effects. According to the Labor Department, the effect of the annual auto retooling shutdowns was smaller than seasonal factors had expected, and jobless claims actually increased 70k on a non-seasonally adjusted basis.
  • US Import Prices dropped to -2.6% YoY in June vs -1.5% exp and -0.3% prev


  • BoK cut 25bps to 3.0% vs no change expected.
  • Banco Central do Brasil cut the SELIC rate 50bps to 8.0% as exp
  • Australia Employment dropped -27k in June vs 0 exp and 38.9k prev. Unemployment ticked higher to 5.2% as exp vs 5.1% prev, as the participation rate dropped sharply to 65.2% vs 65.5% prev
  • China M2 grew to 13.6% YoY in June vs 13.5% exp and 13.2% prev. M1 growth jumped to 4.7% vs 4.0% exp and 3.5% prev.

Upcoming Data:

  • Fri: the 13th, US PPI, U Michigan Confidence
  • Mon: EU CPI, US Empire Mfg, Retail Sales,
  • Tues: UK CPI, German Zew, USCPI, US NAHB, BoC
  • Wed: BoE minutes, UK Unemployment, US Housing Starts
  • Thurs: US Jobless Claims, Philly Fed, Existing Home Sales

Commentary & Links: