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Good morning. Here’s what you need to know.
- Markets sold off in overnight trading in Asia, with Japan’s Nikkei declining 1.1 per cent. Shares in Europe are marginally higher and U.S. futures point to a positive open.
- U.S. economic announcements mostly disappointed this morning. The ADP jobs report showed payrolls expanded by 133,000 in May, below forecasts for 150,000, but an increase from April’s 119,000 gain. The second GDP reading was in line with forecasts for 1.9 per cent growth, although that was 30 basis points below an advanced reading from the BEA. Initial claims missed expectations, at 383,000, against projections for 370,000.
- Japanese industrial production increased by 0.2 per cent in April, below forecasts for 0.5 per cent growth. The data from the Ministry of Economy, Trade and Industry also showed manufacturers expect output to decline by 3.2 per cent in May, before adding 2.4 per cent in June.
- India’s economic expansion slowed to 5.3 per cent during the first three months of 2012, well below expectations for 6.1 per cent growth and the smallest increase since 2008.
- Consumer confidence in the United Kingdom increased slightly in May, up two points to -29. The survey out of GfK NOP showed the first increase in four months, although the index remains in negative territory for 18 months now. Now read about The Global 20 >
- Germany’s unemployment rate declined to 6.7 per cent in May, better than expectations for no change. However the total number of people unemployed was flat; economists had forecast 7,000 fewer Germans without jobs.
- Euro-area inflation declined in April to an annualized increase of 2.4 per cent, 10 basis points below forecasts. Part of the decline was attributed to declines in crude prices. Click here to see the truth about gold >
- Ireland will vote today on whether to adopt the fiscal compact, part of a new EU treaty, which would impose automatic sanctions on countries that failed to cut debts and deficits if public debt remains above 60 per cent.
- JP Morgan’s Chief Investment Office used different swaps pricing than its own investment bank, possibly obscuring the significance of the trading loss before it was announced, Bloomberg’s Matthew Leising, Mary Childs and Shannon Harrington report. Take a look at JPM’s former risk manager’s trading record >
- Kayak is re-evaluating investor appetite before its IPO after Facebook’s first few days of trading largely disappointed investors. The company, which is also using Morgan Stanley as its lead bank, did not launch its roadshow over the Memorial Day holiday as expected.