Daily Market Color 05/07/2015

Daily Market Color
05/07/2015

Economic Reports & Headlines
Germany Manufacturers' Orders report for March came in strong on a monthly and annual basis. MoM: +90bps vs. exp +100bps. YoY: +190bps vs. exp. +160bps.

Industrial Production in France was soft according to Econoday.com. MoM: -30bps vs. exp. +20bps. YoY: +130bps vs. exp. +120bps.

On the domestic front, US weekly jobless claims for the week ending 05/02 came in at 265k vs. exp. 280k.

Britain general elections are underway today. The Conservative party plans to further continue government spending cuts. The Labour party would like to increase taxes on the rich. According to a report from Reuters, opinion polls show that neither party will win enough seats to claim a majority in the 650 seat parliament.

Government bonds are selling off globally, with German bunds leading the decline. The steep drop in German bund valuations is actually its largest decline since Germany's reunification, according to Reuters Chief Markets Correspondent Jamie McGeever in a twitter post.

Trades
It's unlikely that Greece will come to an agreement with its creditors by May 11th according to Greece's and Germany's finance ministers. I am looking forward to the Eurogroup meeting and the ECB meeting next week. Market participants are speculating that additional assistance from the European Central Bank will be contingent upon progress being made at the Eurogroup meeting. The ECB might make it difficult for Greece to receive emergency funding in an effort to expedite a bailout agreement if progress is not made by May 11th.