Daily Market Color 05/02/2013

Daily Market Color

05/02/2013

Economic Reports &Headlines

On the international front, the global economic calendar is filled with manufacturing PMI reports. Let us start with France. The report came in line with consensus at 44.4. This is a low sub-50 reading.   

Germany’s report did not contract as much as expected, 48.1 Vs 47.9.

The EU’s report contracted slightly less than expected, 46.7 Vs 46.5

Over in Great Britain, PMI construction contracted marginally while simultaneously beating consensus, 49.4 Vs 48.0.

The ECB cut its key rate today by 25bps. The refi rate is now at a record low of 50bps. There is speculation that the key rate could turn negative.

On the domestic front, international trade in the US should a smaller than expected deficit in March, -38.8bn) Vs -42.4bn

Jobless claims declined at an unexpected pace last week and beat out the most optimistic forecast in the Econoday consensus, 324k Vs 345k.

Future Reports

Tomorrow I will be looking forward to the following: Great Britain’s PMI service report, US Nonfarm payroll report, US factory orders and US service ISM index.

   

Trades

Tomorrow should be an eventful day. The key report will be the US nonfarm payroll report.