· Asian equity markets finish steady ahead of US employment data. Nikkei -0.13%. Hang Seng -0.03%
· European Equities trade moderately lower. BP is up +3.2%on speculation the dividend will not be cut. FTSE 100 -0.48%. CAC 40 -1.09%. DAX -0.3%.
· After yesterdays US natural gas report the commodity is making new 3 month highs at $4.71.
· Oil is trading -0.64% lower at $74.13, while Gold is down 0.4% at $1205.20.
· Cocoa is approaching its 33year high on fears about its supply.
· Yesterdays factory orders data came in under consensus of 1.8% at an actual figure of 1.2%
· ISM Non-manufacturing index data was flat yesterday. Making this the second month in a row the index has seen no change.
· Petroleum inventories dropped yesterday suggesting a rise in demand or a fall in supply.
· Spanish government bond yields jumped to new yearly highs yesterday renewing Eurozone debt worries.
· Three month Euribor yields jumped to highs yesterday as interbank lending became harder.
· The EUR/USD hits a new 4 year low at 1.2090.
· Hungary reignited Eurozone debt worries as they say talk of default is “not an exaggeration”.
· US futures are down less than -1% before the open indicating a lower open at the bell.
Released This Morning– Employment Data
Nonfarm Payrolls - M/M change
Previous 290,000 Consensus Range 225,000 to 635,000
Consensus 540,000 Actual 430,000
Unemployment Rate – Level
Previous 9.9 % Consensus Range 9.7 % to 9.8 %
Consensus 9.8 % Actual 9.7 %
Average Hourly Earnings - M/M change
Previous 0.0 % Consensus Range 0.0 % to 0.2 %
Consensus 0.1 % Actual 0.3 %
Average Workweek - All Employees
Previous 34.1 hrs Consensus Range 34.1 hrs to 34.2 hrs
Consensus 34.1 hrs Actual 34.2 hrs
Non-farm payrolls came in less than expected indicating that the economy is not recruiting as fast as expected. This bodes badly for the equity markets when they open at 0930ET. The unemployment rate has beaten consensus expectation but not by much, and hourly earnings being higher than expected. The average weekly workweek was longer than expected last month according to the data.
Coming Up Today
1500ET – Treasury STRIPS
This is the monthly data on the amount of stripping and reconstruction occurring on Treasury Securities. Released by the Office of Debt Management it details activities covering the month of May.
Disclosure: no positions