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Wednesday, August 7, 2013

Daily Market Color 06/27/2013

Daily Market Color
06/27/2013

Economic Reports & Headlines
Germany started the global economic report calendar with their jobless rate for June which beat consensus, 6.8% Vs 6.9%

First quarter GDP in the UK was in line with consensus on a quarterly basis, 30 basis points.

The European Commission report on economic sentiment in the region rose above economists’ expectations, 91.3 Vs 90.3.

On the domestic front, jobless claims in the US came in lower than last week’s reading, 346k Vs 355k.

Personal income and outlays for May came in strong relative to April’s reading. Personal income on a month over month basis grew 50 basis points. Consumer spending increased 30 basis points, on a month over month basis.

The National Association of Realtors released their pending home sales report for May, which beat consensus significantly despite a rise in mortgage rates, 6.7% Vs 1.0%.

Over in the island nation of aggressive monetary easing, a parade of reports was released in Japan during the evening. Manufacturing PMI for June was better than May’s reading, 52.3 Vs 51.5.      

Consumer prices in May surely disappointed the Japanese government and the central bank. On a month over month basis, Japan’s consumer price index grew 10 basis points. In April consumer prices rose 30 basis points.

To further worsen the blow of the tepid consumer price report, household spending surprised market participants and declined on a year over year basis, (-1.6%) Vs 1.4%.

The unemployment rate in Japan ticked up 10 basis points for the month of May. The jobless rate is currently at 4.1%.

Industrial production in the country was in line with consensus and was one of the few reports that were not as bad as expected. The reading for May was uneventful, rising by 20 basis points, which was in line with analysts’ expectations.

Retail sales in Japan beat consensus, 0.8% Vs 0.0%   

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