Commentary:
SPX looks a bit oversold in the very short term and ahead of payrolls on Friday. But 1600 looks likely to be tested sometime soon.
Notable:
- US ADP Employment declined to 135k in May vs 165k exp and 119k prev.
- US ISM Non-Mfg improved to 53.7 vs 53.5 exp and 53.1 prev
- Services PMI:
- UK 54.9 versus 53.1 exp. And 52.9 prev
- Italy 46.5 vs 47.5 exp and 47 prev.
- Spain 47.3 vs 45.3 expected.
- HSBC services PMI in China increased to 51.2 from 51.1 prev.
ECB officials, including President Mario Draghi, are now hinting little can work unless banks unload their toxic legacy debt…ECB policy makers are now signaling that any move to kick-start bank lending might be tied to prompt action by European governments to plug holes in bank balance sheets.” – Bloomberg
GDP in Australia increased 0.6% q/q versus 0.7% expected. Annualized growth of 2.5% missed estimates of 2.7%.
Brazil cuts the 6% IOF on fixed-income flows to zero.
Upcoming Data:
- Thu: French Unemployment, BoE, ECB, US Jobless Claims,
- Fri: US Employment, Canada Employment
- Mon: China Trade Balance, CPI, IP, Money Supply, Japan Trade Balance, Eco Watchers Outlook Survey, Australia Home Loans, NAB Business Confidence
- Tue: BoJ, UK IP,
- Wed: UK Claimant Count Rate, Canada Housing Starts, AU Employment
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