Daily Market Color 05/01/2013

Daily Market Color

05/01/2013

Economic Reports &Headlines

We are going to begin today’s DMC with two reports from Great Britain, the 300 year old western European country. Market participants got a read on April’s home prices in the country via the Nationwide HPI. Month over month, prices surprised to the downside when compared to consensus, -10bps Vs 20bps. On a year over year basis the figure came in lower than expected, 90bps Vs 120bps.

We got a read on manufacturing in Great Britain with the CIPS PMI Mfg index. April’s PMI reading was better than expected, although it was a sub-50 reading, 49.8 Vs 48.5.

On the domestic front, total motor vehicle sales missed in April and grew at a slower rate than expected, 14.9m Vs 15.3m.

ADP employment in April disappointed and came in lower than expected, 119k Vs 155k.

PMI Mfg expanded slightly more than expected, 52.1 Vs 52.0.

ISM Mfg came in expanded less than expected, 50.7 Vs 51.0

Construction spending showed a surprise drop in March on a monthly basis, -170bps Vs 60bps.

The Federal Open Market Committee issued their policy announcement and the committee members expressed that adjustments to monthly asset purchases of treasury and agency securities will be contingent upon employment and inflation. Monthly asset purchases could be increased if economic conditions warrant further action from the Fed.

PMI Mfg in China came in lower than March’s reading, but the report still managed to expand in April, 50.4 Vs 51.6.     

  

Future Reports

Tomorrow’s global economic calendar is full, here are the most pertinent reports that I will be paying attention to: PMI Mfg reports from France, Germany and the European Union, ECB policy announcement and US jobless claims.    

  

Trades

I closed the Yen position because a significant amount of time passed since the Yen hit a new low. So I will need the Yen to make new lows before I delve back into the trade. Nearly a month of trading sessions went by and the Yen failed to break through the pivotal 100 level. I will remain long US equities. The Fed statement today indicates that an increase in monthly asset purchases is a possibility if economic conditions begin to decline.