• European stock market, economy and companies update (May 01, 2015)

    ***Notes/Observations***
    - China Apr Manufacturing PMI registers its 2nd straight month of growth (50.1 v 50.0e)
    - Mixed Japanese data; Jobless rate matches lowest reading since Aug 1997 (3.4% v 3.5%e); National CPI improves MoM as core moves off zero percent level; Wage data comes in soft
    - UK Manufacturing PMI misses expectation (51.9 v 54.6e) but remained in expansion territory for the 26th straight month


    *** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
    **Equities**
    Indices [FTSE 100 -0.1% at 6,951, Continental European bourses closed for May Day holiday

    - Market Focal Point/Key Themes: Markets subdued with indices closed on continental Europe for Labour Day holiday; pharmaceutical companies slip in London; Lloyds countered the trend after posting better than expected net profit

    By Sector
    - Industrials [Vedanta VED.UK +3.8% (talks to buy Cairn stake)]
    - Financials [Lloyds LLOY.UK +4.1% (earnings beat)]

    **Speakers**
    - Canada ratings agency DBRS stated that it saw no sovereign rating change for UK post-election
    - Sweden Fin Min Andersson: Govt to focus efforts on creating jobs
    - BOJ Monetary Affairs Dept review of Quantitative and Qualitative Monetary Easing (QQE) noted that the program had lowered real interest rates by slightly less than 1% and the actual improvement in economic activity and prices were in line with mechanism anticipated. Further rise in inflation expectations is needed to achieve the 2% inflation target in a stable manner (**Note: QQE implemented 2 years ago)
    - India Fin Min Jaitley stated that ot could not afford to deplete the country's currency reserves (**Note: FX Reserves apprx $343.2B)

    **Currencies***
    - The EUR/USD continued to claw back some of its overall 2015 losses and registered fresh 2-month highs in a quiet holiday session. The pair saw its best monthly performance in 5 years in April (rose 1.7%) as investors scaled back the timing of the first potential Fed rate hike. YTD it still is off approx. 6.5% against the greenback despite the recent steepening in the in European yields over the past few sessions. The pair was on course for it 7th straight day of gains. Dealers watching the 100-day moving average of 1.1296 as resistance
    - The GBP was softer after some UK economic data missed expectations. Manufacturing PMI missed expectations but remain in expansion territory for the 26th straight month while Mortgage Approvals also came in below consensus. GBP/USD gave back earlier gains to approach 1.5320 area after the data. PMI report pointed to a significant slowing in the manufacturing sector with Sterling strength being partly to blame for the drop. The 10-year Gilt yield initially fell below 1.79% (off 4.4bps) as a result

    **Political/In the Papers:
    - (GR) Greece PM Spokesperson: PM Tsiprias said he was confident a deal with creditors was very close. Agreement will be in line with our mandate and not cross red lines

    **Looking Ahead***
    All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
    - 06:00 (UK) DMO to sell combined £4.5B in 1-month, 3-month and 6-month Bills
    - 06:45 (US) Daily Libor Fixing
    - 07:30 (IN) India Weekly Forex Reserves
    - 08:15 (US) Baltic Dry Bulk Index
    - 08:30 (US) Fed's Mester (Non-voter, hawk)
    - 09:30 (CA) Apr Canada RBC Manufacturing PMI: No est v 48.9 prior
    - 09:45 (US) Apr Final Markit Manufacturing PMI: 54.2e v 54.2 prelim
    - 10:00 (US) Apr ISM Manufacturing: 52.0e v 51.5 prior; Prices Paid: 42.0e v 39.0 prior
    - 10:00 (US) Apr Final University of Michigan Confidence: 96.0e v 95.9 prelim
    - 10:00 (US) Mar Construction Spending M/M: +0.5%e v -0.1% prior
    - 13:00 (US) Weekly Baker Hughes Rig Count data
    - 15:45 (US) Fed's Williams (Voter, dove) speaks at Chapman University Conference
    - (US) Apr Domestic Vehicle Sales: 13.45Me v 13.35M prior; Total Vehicle Sales: 16.90Me v 17.05M prior


    **Economic data***
    - (TH) Thailand Apr CPI M/M: 0.0% v 0.3%e; Y/Y: -1.0% v -0.8%e; CPI Core Y/Y: 1.0% v 1.1%e
    - (IE) Ireland Apr Manufacturing PMI: 55.8 v 56.8 prior (23rd month of expansion)
    - (JP) Japan Apr Vehicle Sales Y/Y: +5.0% v -13.1% prior (1st rise in 10 months)
    - (NL) Netherlands Apr Manufacturing PMI: 54.0 v 52.5 prior (22nd month of expansion)
    - (UK) UK PMI Manufacturing (miss): 51.9 v 54.6e (26th month of expansion but lowest since Sept)
    - (UK) Mar Mortgage Approvals (miss): 61.3K v 62.5Ke
    - (UK) Mar Net Consumer Credit: £1.2B v £0.8B; Net Lending on Dwellings: £1.8B v £1.8Be
    - (UK) Mar M4 Money Supply M/M: +0.3% v -0.2% prior; Y/Y: -0.6% v -3.2% prior; M4 Ex IOFCs 3M Annualized: 2.5% v 2.2%e

    Fixed Income:
    - None seen

    Contributed by Trade The News
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