Quote:
‘Mine eyes have seen the glory of the coming of the Lord:
He is trampling out the vintage where the grapes of wrath are stored;
He hath loosed the fateful lightning of his terrible swift sword:
His truth is marching on.’Julia Ward Howe (1844-1889)
The News:
US Treasury’s Geithner says credit markets thawing but ‘it’s not going to feel better for a long time formillions of Americans’.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
02:30 AU Reserve Bank of Australia Minutes of MPC meeting; rates to stay low for some time as recovery not imminent.
09:30 GB April CPI (+0.1% to +0.6% M/M, +2.1% to +2.7% Y/Y, Core +1.2% to +1.8% Y/Y, versus +0.2%, +2.9% and +1.7% March).
10:00 DE May ZEW Survey (Sentiment 15 to 28, Situation –93 to -80, versus 13 and –91.6 April).
10:00 EZ16 May ZEW Survey (10 to 24 versus 11.8 April).
13:30 US April Housing Starts (465K to 564K, Building Permits 480K to 556K, versus 510K and 516K March).
18:15 US Fed’s Stern speaks and answers questions, Minnesota.
00:50 JP Q1 GDP (Mizuho Research Institute –4.9% Q/Q, -18.1% Y/Y, Deflator +1.9%, versus –3.2%, –12.1% and +0.7% Q4).
The Psychology:
Presidential and parliamentary elections in Malawi today.
The Risk:
Money market futures become overbought at record highs.
Today’s most interesting chart: Eurodollar future June 2008 contract
New record high.
