US indices were mixed on Thursday. On the US economic data front, initial jobless claims fell by 12,000 to 377,000 (378K expected and 389K last week) in the week ended June 2nd. Stocks in the household & personal products and capital goods sectors traded higher while shares in the semiconductors and telecommunication services sectors were under pressure. Looking at US corporate releases, Navistar (NAV -14.35% to $24.11) posted for its 2Q ended April 30 a diluted LPS of $2.50 compared to an EPS of $0.93 a year ago.

In Europe, in UK, according to BRC, sales like-for-like gained 1.3% in May YoY (+0.7% expected) vs -3.3% in April. According to Halifax, UK house prices advanced 0.5% in May (+0.5% expected) vs -2.3% in April. PMI services in May was flat at 53.3 vs 52.4 anticipated. BoE kept its benchmark interest rate at 0.5%.

The intention of the PBOC when they cut interest rates was to improve risk appetite, so one could have imagined how they felt when Asian equities opened bathed in a sea of red

After the saggy bounce recently, risk sentiment took a turn for the worse today, weighed by multiple concerns such as the downgrade of Spain, the ambiguity regarding QE3, and rumours of softer Chinese data over the weekend.


Posted by Mike Moloney | Account Executive