Europe lowers growth forecastsMay 05, 2014 Posted by: Pete Karabatos
Thelabor department reported that employers added 288,000 jobs in April, thebiggest monthly increase in two years. RichardFisher, Dallas Fed President, commented that the U.S. economy is “moving in theright direction” and “getting stronger”. He noted that “the private sector is beginning to hire” and the Fed would“like to see that continue and, in fact, increase.” At the same time however, 800,000 people ofworking age left the labor force bringing the labor participation rate down toa 36 year low. Fisher noted that thelabor market has been held back by a shortage of trained workers.
•Stocksare lower, bonds are rallying, gold is higher, and wheat hit a 13 month high asviolence erupted in Ukraine as it moved ahead with military operations toremove rebels from its eastern industrial region.
• TheEuropean commission cut its growth forecasts to .8% for 2014 and 1.2% for 2015as a result of low inflation.
• Chinese manufacturing PMI came in at 48.1,the fourth consecutive reading indicating contraction in the economy.
• TheIndian Rupee dipped below 60 for the first time in nearly a month on USDweakness driven in large part by concerns about the falling US laborparticipation rate.
05/06 EUR: Eurozone ServicesPMI (April)
05/06 USD: TradeBalance (March)
05/07 CAD: BuildingPermits (March)
05/07 USD: ConsumerCredit (March)
05/08 EUR: ECB Policy InterestRate
05/08 USD: Initial JoblessClaims (May 3)
05/09 GBP: Industrial Production (March)
05/09 CAD: UnemploymentRate (April)
05/12 CNY: Retail Sales(April)
FX Indications EUR 1.3884 GBP 1.6868 CAD 1.0988 JPY 101.94 CHF 0.8768 AUD 0.9271 RUB 35.836 INR 60.22 CNY 6.2458 BRL 2.223 ILS 3.461 ZAR 10.556 NZD 0.8676 SEK 6.5441 Stock Indices Dow 16512.9 Nasdaq 4123.9 S&P 1881.14 FTSE ...Read More