3 June, 2016
The Eurozone government bonds traded modestly firmer on Friday as investors were wary of making big moves ahead of US jobs report, which could offer hints about the pace of Fed interest-rate hike.
Also, slowdown in Chinese PMI boosted trader’s interest in buying safe-haven instruments.
The benchmark German 10-year bonds yield, which moves inversely to its price fell 1 basis points to 0.103 percent, French 10-year bunds yield dipped 1 basis point to 0.453 percent, Irish 10-year bonds yield moved down 1-½ basis points to 0.775 percent, Italian equivalents inched lower 1-1/2 basis points to 1.366 percent, Netherlands 10-year bonds yield tumbled 1 basis points to 0.317 percent, Portuguese 10-year bonds yield hovered at 3.174 percent, Spanish 10-year bonds yield remained steady at 1.487 percent and British 10-year bonds yield fell 1/2 basis points to 1.339 percent by 10:00 GMT.
The US May Labor Department employment situation report will be released on Friday at 12:30 GMT. We expect non-farm payrolls will increase +180k in May, on the contrary, the market is expecting an increase of +165k, as compared to +160k reading seen in April, alongside a decrease in the unemployment rate to 4.9 percent, investors consensus are for a 4.9 percent result.
Moreover, the focus will likely be paid to gains in total private employment which we expect will increase around +175k. Beyond the headline, we expect average hourly earnings will increase +0.2 percent m/m, alongside no change in weekly hours of 34.5. On balance, despite the notable weakness seen in recent months, we anticipate further improvement taking hold in the coming months as conditions gradually improve.
In addition, The European Central Bank, at its policy meeting yesterday, left interest rates unchanged, while sounding cautious on the outlook for the Eurozone, which faces downside risks from global threats, especially the "Brexit" referendum.
The ECB left the rate on bank overnight deposits at -0.4 percent, the main refinancing rate at 0.00 percent and the rate on the marginal lending facility at 0.25 percent.
ECB President Mario Draghi in his speech at the policy meeting on Friday, warned investors of a possible threat if a 'vote out' comes in for Britain, while he also left the door open to adopting possible action if inflation remains below target. This, in fact, seems a strong possibility, given the ECB’s latest forecasts.
Meanwhile, the pan-European STOXX 600 index was up 0.50 percent and the euro-area blue-chip gauge, the STOXX 50 jumped 0.28 percent. The FTSE 100 Index rose 0.94 percent, the DAX trading 0.48 percent higher and the CAC-40 ticked up 0.47 pct by 10:00 GMT.
The Bank of England has trimmed the capital requirements of commercial banks in its bi-annual Financial Stability report (FSR) published on Tuesday, in an attempt to waive off mounting Brexitrisks, post the June 23 UK referendum...
Improved investor sentiment on PGMs and anticipated increases in physical investment purchases in 2016 have prompted an upward revision to our platinum price forecast from the last quarterly review...
The greenback rose to an early high of 103.38, but failed to sustain gains above the 103 level, trading lower at 102.71...
Japanese fixed income assets and its currency are once again proving to be the best haven in turbulent times. Investors just love piling into the country’s bonds and yen, whenever there are signs of trouble and uncertainties...
The French private sector output is expected to have declined for the first time in four month in June, based on the recent flash PMI data for France...
Pattern formed - classic bullish divergence. Potential Reversal Zone- 2060. S&P500 has recovered after making a low of 2063.70.it is currently trading around 2078. Short term trend is lightly bullish as long as support 2060 holds...
One of the major factors that have been pushing crude oil prices higher is supply disruption both planned and unplanned. That supply disruption at one point taken away as much as 2.5 million barrels per day, off the market...
In its March meeting, the European Central Bank (ECB) announced a fresh package of stimulus and one measure of that package -- relating to corporate bond purchases (CBP) -- kicked off on Wednesday...
Major resistance- $1226 (10 day EMA). The yellow metal has jumped after making a low of $1205 yesterday. It is currently trading at $1215. Market awaits ECB policy decision today for further direction...
|8||Fort Financial Services||67%|