Chinese HSBC Services PMI (Apr) M/M 54.1 (Prev. 53.3) (Sources)
Japanese Market Holiday – Greenery Day
IMF's Lipton has said China is going to make significant contributions to the IMF's fundraising, adding that he is satisfied with the country's efforts. China is yet to announce a specific quantity of contribution. (China Business News)
T-notes settled in minor positive territory on Thursday, as risk-averse flows were boosted during the US session after a miss on the street estimates from ISM Non-Manufacturing data. 10y futures initially followed the European fixed income market lower after a hawkish tone from ECB's Draghi in his press conference, however the fixed income market recovered strongly into the close ahead of tomorrow's NFP data. At the pit close, t-notes settled at 132.06+, up + ticks. Finally, the DJIA finished at 13206.59, down 0.47%; the NDX finished at 2704.59, down 1.1%; and the SPX finished at 1391.57, down 0.77%. T-notes were trading braodly flat at 132.05 heading into the EU session, as market participants remain cautious ahead of the key NFP data. Last price taken at 0635BST. (RANsquawk)
Fed's Williams said that he is not in favour of QE3 now, and the Fed would need to raise rates if the economy "heats up", though the high unemployment is mostly due to a shortage of demand, and that the housing crash, tight credit, drops in government spending and uncertainty are all holding down growth. (Sources) Fed's Plosser also said QE3 is not a good policy choice now, and also said the public should watch changes in Fed officials' rate projections to assess Fed's likely path.
Fed's Lockhart said he would not rule out QE3 and all options need to be kept on the table. He added that policy action must be balanced with inflation risks, and the lack of clarity on the labour market is slack, with jobs growth primarily restrained by relatively modest economic expansion. (Sources)
US Fed balance sheet liabilities shrank to USD 2.847trln as of May 2 vs. USD 2.849trl the prev. week; foreign central bank holdings of US debt rose USD 7.755bln to USD 3.497trl as of May 2; Fed holdings of US Treasuries totalled USD 1.6676trln as of May 2 vs. 1.6678trl the prev. week; Fed holdings of agency debt totalled USD 94.57bln as of May 2, unchanged from the prev. week; Fed holdings of MBS totalled USD 847.820bln of May 2 vs. USD 847.796bln the prev. week. (Sources)
The Monster Employment Index gained 2.1% to 146 points last month from 143 in March. (RTRS) The index saw annual growth in 14 of 20 industries and 17 of the 23 occupations monitored.
The Spanish economic minister De Guindos has asked EU's Rehn about using the European Financial Stabilisation Mechanism to fund a 'bad-bank' in Spain, according to unidentified officials. (El Confidencial)
Spanish banks' toxic property assets are to be parked in liquidation entities on a voluntary basis according to a Spanish Economy Minister spokesperson. (Sources)
German Chancellor Merkel hopes to meet the next French President for talks within a day of his being sworn into office, followed swiftly by an informal European summit at the end of May, according to officials in Berlin and Brussels. (FT-More)
The latest polls ahead of this Sunday's French general election shows Sarkozy closing the gap behind Hollande, but not enough to secure a second term in office. (Sources) The polls show Hollande winning with 52.5% +/- 2.2%.
S&P's President has said he still expects Eurozone GDP to be flat this year, and remains very worrisome. (Sources)
NY Fed said the total USD swap borrowings fell to a total USD 27.256bln in latest week vs. Prev. USD 32bln; ECB tapped USD 6.332bln from Dollar Swap facility in the latest week. (Sources)
Australia's RBA have said they will adjust their cash rate as necessary in order to foster growth and lower inflation. In their monthly monetary policy statement, the bank cut their June 2012 core inflation forecast to 2.0%, previously 2.25%. The RBA have also cut their June 2012 GDP forecast to 2.75%, previously 3.5% and cut their December 2012 GDP forecast to 3.0%, previously a range between 3.0 and 3.5%. (Sources)
Brazil's finance minister Mantega has announced changes to the country's savings accounts that may clear the way for the central bank to begin cutting their interest rates to historical lows. (Sources)
Britain have said Iran may respond to nuclear demands. (Haaretz)
WTI crude futures were seen trading up USD 0.09 at USD 102.63, receiving a minor boost overnight following the stronger Chinese HSBC Services PMI. Last price taken at 0640BST. (RANsquawk)
The CME group have received a 90-day extension for implementing margin changes to accounts that were announced yesterday. The changes have now been pushed back to August 5th. (Sources) During the extension period, The CME group will work with the CFTC to address customer concerns.
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