Daily Market Color 05/21/2013

Daily Market Color

05/21/2013

Economic Reports & Headlines

Japan started the economic calendar for today at 12:30am New York time with their All industry index, which came in lower than last month’s reading, -30bps Vs 60bps.

April’s producer prices in Germany were in line with consensus, on a month over month basis, declining 20bps. This is the weakest reading since March of 2010. A decline in energy costs contributed to the decline.

April’s reading of consumer prices in the UK was lower than expected on a monthly basis, 20bps Vs 40bps.

Producer prices in the UK unexpectedly contracted on a monthly basis in April, -10bps Vs 20bps.

Japans trade deficit was larger than expected in April, -879bn Yen Vs -594bn Yen.

The Bank of Japan monetary policy announcement was uneventful. The monetary policy board voted unanimously to keep its asset purchase program unchanged.

Future Reports

Tomorrow we will get a further insight into the Bank of England’s most recent monetary policy meeting.

We will also get a read on retail sales and industrial trends in the UK as well.

On the domestic front, the National Association of Realtors will release their existing home sales report.

Federal Reserve Chairman, Ben Bernanke, will be addressing congress’s Joint Economic Committee.

FOMC minutes for their most recent meeting will be released.  

                  

Trade

There is nothing on the immediate horizon that should derail this equity rally. However, nonfarm payrolls for May are expected to be released within two weeks. An upset in that report could be grounds for a correction.