The Banking and Strategy Initiative

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US Economy: The more things change..(European inflation data)

Retail NL

Retail NL (Photo credit: . Shell)

Though Italian one year BOT on auction landed a cut off yield closer to 4% than the last 2.3% yield, the inflation thru the Eurozone more or less remained unchanged with a 1.9% for Germany and 3.2% for Italy overshadowing the slightly negative -0.1% for France and Spain. The French current account deficit looked healthy at EUR 4 B but there does not seem to have been any concomitant growth, the Swiss inflation data was also negative (-0,2%) and Industrial Production at the Eurozone fell faster than the UK reports yesterday at a 0.8% likely directly linked to conditions in GErmany as the 10Y Bund remains a fleeting 1.5%

US retail sales remained negative including Core Retail sales ex Auto while Core PPI was still marginally positive at 0.2%  while Monthly PPI fell almost 1%

Oil inventories were mainly moving at the pump (retail – gasoline) but still all Gasoline , Crude and Distillates were showing a larger offtake for the first week of June, consumers taking it upon themselves to get out of the hole and probably likely to spend again in the coming weeks

Tomorrow’s calendar includes Japanese IIP data followed by German inflation. The Indian inflation number due tomorrow is likely to stay under 7% with Money Supply data having come in at a  steady 13.7% today afternoon

JP Morgan’s up in trading as Washington takes in Jamie Dimon’s testimony, most of the Q&A soft and not requiring any protection for Dimon with Clawback being likely for the Trading team and Facebook is also trading up 3/10s of 1 % to nearly $28, continuing the climb back from $26

Though retail sales ere reported down and revised downward for March and April, Gasoline sales are picking up already and June is likely to be more cheerful. J&J gave a big thumbs up to the Deal Economy with approval for its $20B acquisition of Synthes and is caught in a storm of updates, JP Morgan, Jeffries and Raymon James following the stocks fortunes in the upswing(MarketWatch)

More Central Bank news from the Pacific follows tonight with a RBNZ rate announcement and a RBA Governor public statement while Thursday brings more European and US inflation data, the 30 Y Bond Auction yield and the US Fed update on the Balance sheet with Canadian economic reports and a Japanese interest rate decision


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