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US Morning Report: Futures flat, Euro offers no immediate panic

English: Logo of Circuit City, now-defunct US ...

English: Logo of Circuit City, now-defunct US retail chain (Photo credit: Wikipedia)

The Durable Goods report came through for US investors on the May data, with the overall Durable goods purchases growing 1.1% after a down/flat March and April. Year on Year data however has pegged to a lower 4.6% growth after a 6.9% mark for April. Excluding transportation which is mostly new orders for Airplance and had boosted numbers for March and April, the number remained positive at 0.4% and a 4% growth on previous year.

Pending home sales in a few minutes after opening bell would also report positive data. Meanwhile manufacturing sentiment improved in Italy and German retail(CPI) inflation was actually down at 1.7% a bit too low for comfort. Spanish retail sales in the afternoon were down almost 5% on year

Angela Merkel continues to hedge her bets driving down expectations of an agreement at the summit that begins in a little more than 24 hours. Tomorrow’s flurry of European data offers datapoints from UK GDP contracting at 0.3% on May to the record low German unemployment expected to remain static at 6.7% and Italian CPI expected to stay at just over 3% Tonight before that we get Retail sales data for Japan expecting to halve from May to 3%

The Euro continues to track 1.2490 levels cautious ahead of important developments while the Dollar continues to look for an opportunity to run faster and higher. Commodities continue a global downtrend without a corresponding move in DXY which is wholly taken by the Euro’s 40% weight

Meanwhile after a successful transformation at Macys and GAP apparently Best Buy is ready to forget horror tales of Private Equity in Retail including the folks at Sears Holdings. Best Buy is negotiating for a private takeover under Credit Suisse advice even as Radioshack continues to struggle with falling sales and Circuit City shut down just to years back from buying/renting too much space and not being able to compete on product selection / categories in home electronics.

Meanwhile banks recovery on trading desks is muted this quarter as they grow back retail and commercial lending but 2 year tracking data shows deleveraging in the credit book to be as high as 10%

UPDATE: Pending home sales made a great 14% uptick in the South and overall grew more than 1% canceling out the pessimistic data for last week in the latest Purchase report from the MBA down 7.7%

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