Daily Market News 6 May 2011

 

Yesterdays’ market movers

• The first piece of data out yesterday was UK Purchasing Managers Index for the services sector, this came out worse than previous and saw Sterling lose grounds against its major counterparts. This figure is another sign that the UK will not be raising interest rates anytime soon.

• From Germany yesterday we had German Factory Orders which came out a lot worse than previous, this shows that over the last year the Germany economy is slowing down however this figure has no real influence on GDP for the euro zone.

Today’s market movers

• Today we have Producer Price index YoY from the UK, this is expected to come out slightly worse than previous, again this is a sign that the UK inflation may slow down on its own accord and a rate hike may be moving further away, sterling could weaken as a result of this.

• In Germany today we have Industrial Production YoY expected lower than previous. This plays a big part in how strong Germany’s manufacturing sector is and as Germany is a leader in the euro zone, it plays a big part in the manufacturing sector for the EU as well.

• From the US today we start off with Unemployment Rate which is expected to come out the same as previous, this will have little effect on the dollar weakness we are seeing at the moment.

• Also from the US today we have Non-farm payroll, after the bad ADP figure we saw on Wednesday we are expecting to see Non-farm payroll come out worse than previous , this is another bad figure from the US economy and shows that they are still in no position to raise interest rates.