Stiri financiare

Dow +133.17 at 8433.19, Nasdaq +23.20 at 1754.28, S&P +16.37 at 909.45

General Motors Corp
The automaker’s bondholders accept the amended debt-for-equity offer.

Time Warner Inc
The parent company of CNNMoney.com announced a spinoff of its AOL Internet business as part of its effort to focus on film, television and other content creation.

Costco Wholesale Corp
The warehouse retailer reported fiscal third-quarter earnings fell 29% on 4.8% lower net sales and 7% lower comparable-store sales.

Exelixis Inc
The South San Francisco-based pharmaceutical company had the rights to potential cancer drug candidates purchased by Sanofi-Aventis SA, for a potential payment of more than $1B.

JPM: "The durable goods figures point to another very bad quarter for capital spending, though perhaps not quite as severe as Q109."

Trader noting quick pop in the pair to $1.3980 area a short while ago with euro quickly retracing from there. Move tied to a wire report, Rtr, citing a Brazilian official who reportedly said BRIC
nations may try to lessen their dependency on the dollar. Euro quickly back to $1.3930 area.

Crude Oil: July WTI NYMEX $65 (+$1,55)

Dow +77.34 at 8377.36, Nasdaq +16.40 at 1747.48, S&P +12.36 at 905.42

Initial jobless claims in the U.S. dropped to 623,000 in the week ended May 23 from 636,000 in the previous week, the Labor Department reported. The median forecast of economists was for a decrease to 628,000.
Orders for durable goods meant to last several years gained 1.9 percent in April after the previous month’s 2.1 percent decline. The median forecast of economists was for a 0.5 percent gain.
The pound dropped from a six-month high against the dollar after Bank of England policy maker David Blanchflower told the London-based Times there may be “many false dawns” for the nation’s economy.
Blanchflower, who is leaving the Bank of England’s rate- setting Monetary Policy Committee this week, told the Times it’s “pretty hard to see anything very strong for 2010.” Britain’s Chancellor of the Exchequer Alistair Darling predicted last month the U.K. economy will grow more than 1 percent next year, after contracting 3.5 percent this year.
The euro rose against sterling on growing expectations for a rebound in the 16-nation economy. An index of executive and consumer sentiment in the region increased to 69.3 this month, the highest level since November, from 67.2 in April, the European Commission in Brussels said.

HFE's Ian Shepherdson on new home sales - "This is a bit disappointing, given the hefty increase in homebuilder sentiment in the past couple of months. The relatively late Easter might have
restrained activity, we suppose, but we cannot be sure. Either way, we still think very low mortgage rates will entice people back into the market in greater numbers over the next few months."

Mining stocks have continued to weigh on the benchmark indices, particularly in London, where BHP Billiton (BLT) and Rio Tinto (RIO) are leading losses. Financials have also remained weak during the day, generally slipping further during the afternoon, with Deutsche Bank (DBK), BNP Paribas (BNP) and HSBC (HSBA) hitting their respective indices hardest. Oil stocks have also eased off a little during the session, despite the strength seen in crude, with BG Group (BG.) in London having a reversal into the red. The FTSE-100 is currently down 56pts (-1.3%), CAC-40 down 45pts (-1.4%), and Xetra-DAX down 87pts (-1.7%).

New home sales in April rose 0.3% at a seasonally adjusted annual rate of 352,000 from a revised rate of 351,000 the month before, according to government figures.
But the increase was smaller than expected, and the previous month's figures were revised sharply lower. Economists had expected a sales rate of 360,000. March sales were originally reported at a rate of 356,000.
Earlier, a report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.
Initial jobless claims fell to 623,00 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.
Claims were expected to have declined to 628,000.
Orders for durable goods jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, compared to a revised decline of 2.1% the prior month.
S&P500

Bonds: The yield on the benchmark 10-year Treasury note slipped to 3.64% after surging to a 6-month high of 3.71% Wednesday. Bond prices and yields move in opposite directions.
Mortgage rates, which are pegged to Treasury yields,jumped in the most recent week. The average 30-year fixed mortgage rate rose to 5.45% in the week ended Wednesday from 5.24% last week.
After the closing bell, personal computer maker Dell (DELL) is expected to report first-quarter earnings of 23 cents per share, down from 38 cents per share a year ago.
GM (GM) shares rose after the troubled automaker said major bondholders have accepted a revised deal to swap debt for equity. However, the deal does not mean that the company will avoid filing for bankruptcy, which could happen at the end of this week if certain other restructuring efforts fail.
NYMEX crude oil for July delivery prices rose 55 cents a barrel to $64.01.
COMEX gold for August delivery rose $6.40 an ounce to $961.60

"This is a bit disappointing, given the hefty increase in homebuilder sentiment in the past couple of months. The relatively late Easter might have restrained activity, we suppose, but we cannot be sure. Either way, we still think the combination of very low mortgage rates and falling inventory will entice people back into the market in greater numbers over the next few months."

The major indices are making an upward turn and are now back to trading in mixed fashion. However, financial stocks are putting together an impressive advance, climbing to a 1.7% gain to trade at session highs.
Energy stocks are also outperforming the broader market. The energy sector is currently up 1.3% amid strength in oil and gas exploration companies (+1.8%), oil and gas refiners (+1.5%), and oil and gas drillers (+1.4%).
Higher crude oil prices are also providing a boon for energy stocks. Crude prices spiked to a 2% gain to trade at $64.70 per barrel immediately following news that weekly inventory data showed a draw of 5.4 million barrels. A draw of roughly 150,000 barrels had been expected.

Crude oil prices are up a healthy 0.7% to $63.90 per barrel following OPEC's decision to leave production targets unchanged. Traders will be factoring the latest inventory data into prices when the data is released at the top of the hour.
Meanwhile, natural gas inventories showed a weekly build, but that hasn't stopped natural gas prices from spiking to session highs near $3.68 per contract, up 1.2%.
Precious metals are also garnering support. Gold is currently being priced 0.4% higher at $957.40 per ounce, while silver is being priced 1.7% higher at $15.12 per ounce.

US: EIA crude oil stocks -5.4 mln to 363.1 mln May 22 week.

Mizuho's Steve Ricchiuto on new home sales - "This report confirms that the much anticipated rebound in housing has yet to materialize."

A flurry of selling pressure has erased broad-based gains and left the major indices trading in mixed fashion. The pressure started just ahead of the latest batch of new home sales and mortgage delinquency statistics, but it intensified with the release of the data.
New home sales for April came in at an annualized rate of 352,000, which is a bit below the 360,000 that was widely expected. The prior month's sales were revised moderately lower to reflect annualized sales of 351,000 new homes. Month-over-month, new home sales were up 0.3%, which is shy of the 1.1% increase that was expected, but up from the 3.0% monthly decline that was seen in March.
Meanwhile, the ratio of mortgage delinquencies to total loans came in at 9.1%, up from 7.9%.

US: April new home sales +0.3% to 352k

Stocks are putting together a solid start as they rebound from the prior session's downturn.
Shares of General Motors (GM 1.30, +0.15) have been halted after they had spiked more than 10% in the first few minutes of trading. According to CNBC, GM bondholders have accepted an amended debt-for-equity offer after GM's previous offer expired late Tuesday night.
Despite the strong start for stocks, Treasuries are moving higher in the early going. The benchmark 10-year Note is working to reclaim its losses from the prior session, when it shed more than an entire point. The 10-year Note is currently up 35 ticks, which has pushed its yield back down to 3.61%.

Reported demand placed between $1.5910/00 currently providing a cushion to corrective pullbacks, the rate earlier able to retest overnight Asian highs around $1.5977, with offers to $1.5980 capping. A break below $1.5900 to allow for a deeper move toward $1.5880 ahead of a revisit toward stronger support area between $1.5860/50. Resistance now seen at $1.5960/65 ahead of stronger interest placed toward $1.5980. Above here and rate can edge toward $1.6000.

U.S. stocks were set to open slightly higher Thursday, as investors reacted to unexpectedly strong data on jobless claims and durable goods orders as well as Time Warner's announcement that would separate from AOL, while still fretting over high Treasury yields.

U.S. stocks plummeted Wednesday as bond yields spiked and investors eyed fresh signs that General Motors (GM, Fortune 500) is headed for bankruptcy. The Dow and S&P both shed about 2%, while the Nasdaq lost 1%.
Initial jobless claims fell to 623,00 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.
Claims were expected to have declined to 628,000, according to a consensus of economist opinion from Briefing.com.
Orders for durable goods jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.
A reading on new home sales, due after the market open, is expected to to rise to an annual rate of 360,000 in April from the prior month's 356,000
Companies: Auto parts supplier Visteon (VSTN) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F), has been hit hard by the sharp decline in demand for cars.
Media powerhouse Time Warner (TWX) announced that it would separate itself from online service company AOL. Time Warner said that AOL would be spun into a separate publicly traded company.
World markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.
Oil prices rose 32 cents a barrel to $63.77

"When GM files for bankruptcy within 10-days we expect initial claims to jump up to 665k... we are targeting an 11.0% unemployment rate by February 2010."

WTI Nymex crude has bounced by around 30 cents as an initial reaction to the better than expected US data, currently up over +1.0% at $63.60.

US: Apr durables new orders +1.9%

US: Jobless claims -13k to 623k

"Today, April durable goods orders are expected to rise 0.5% after falling 0.8% in March. Orders ex-transportation are expected to fall 0.3% after falling 0.7% in March. Durable orders are still weak, but like so many other indicators, they indicate the pace of economic deterioration has slowed." - FTN's Chris Low.

Data:
06:00 Germany ILO Unemployment Rate (Apr) 7.7% 7.6%
06:15 Switzerland Trade Balance (Apr) 2.56B 0.15B
09:00 Е16 Business climate indicator (May) -3.17 -3.00 -3.33
09:00 Е16 Economic sentiment index (May) 69.3 68.8 67.2
10:00 UK CBI retail sales volume balance (May) -17 -10 +3%

The yen fell the most in eight weeks against the dollar and declined versus the euro after a report showed demand for overseas assets among Japanese investors is growing, adding to evidence the recession is moderating. “The interest in playing the carry trade by Japanese investors has been revised and that weighs on the yen,” said Michael Klawitter, a currency strategist at Dresdner Kleinwort in Frankfurt. “Risk in dollar-yen is to the upside.” The yen may weaken to 100 per dollar by June 30, Klawitter added.

A GM bankruptcy filing became almost certain after the world’s largest automaker failed yesterday to persuade enough bondholders to take equity in a streamlined company in exchange for $27 billion of debt. The debt-for-equity swap offer by GM failed to win the required 90 percent approval of bondholders by the time it expired last night.
“GM’s insolvency looks practically inevitable, which would likely cause risk aversion,” said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd., Japan’s largest currency broker. “This could spark buying of the dollar.”

The Euro is showing strength during the European session and, from 1.3790 iontra-day low ahead of the European session opening, the pair has reached levels right above 1.3885 resistance level at the time of writing.In case of successful move above 1.3885, next resistance levels lie at 1.3900/25 congestion area and above there, 1.3940/50 area, and 1.4000. On the downside, support levels remain at 1.3800, and below there, at 1.3755 and 1.3725 (May 21 low).

After posting today's session low at 1.5850, Cable has risen around 130 pips during the European session to break 1.5950 resistance (after several attempts) and reach 1.5980 as new intra-day high. Currently the pair has fallen slighly and it is trading around 1.5945/55, at the same opening price range.

EUR/USD: $1.3870, $1.3900, $1.3935
USD/JPY: Y96.30, Y96.00, Y95.00
AUD/USD: $0.7880
USD/CAD: C$1.1430

FTSE -51.00 (-1.16%) at 4,365, CAC -32.00 (-0.96%) at 3,263, Dax -55.00 (-1.10%) at 4,946

EUR/USD
Offers: $1.3885, $1.3900, $1.3950/60
Bids: $1.3815, $1.3800/790, $1.3850

USD/JPY
Offers: Y97.20, Y97.50
Bids: Y96.60, Y96.30

FTSE -50.00 (-1.13%) at 4,366, CAC -35.00 (-1.06%) at 3,260, Dax -55.00 (-1.10%) at 4,941

European markets are going through losses on Thursday as investors confidence was hit by General Motors' bankruptcy prospects. Euro and Pound are trading sideways after recent declines.Eurostoxx 50 Index drops 1.22% and the German DAX Index declines 1.34%, while French CAC Index sheds 1.20%. In the UK, London FTSE Index trades practically at the opening level. On the macroeconomic front, German Unemployment rate dropped to 8.2% in May from 8.4% in April, on adjusted terms. The total amount of jobless workers rose by just 1K instead of the 64K increment forecasted by market analysts. Furthermore, Euro-Zone business and consumer confidence rose for the second straight month in May.
EUR/USD decline from 1.4000 high on Wednesday's U.S. session has found support at 1.3800 although recovery attempts have been capped at 1.3885 so far, The Euro trades around 1.3865 at the moment.
USD/JPY rally from 94.65 low on Wednesday has found resistance at the 97.05 although the pair remains trading right below 97.00 and the pair could attempt to break above intra-day resistance any time.
GBP/USD decline from 1.6087 has found support at 1.5859 and the Pound has returned to the flat trading channel from 1.5900 to 1.5950.

The FTSE-100 is continuing to trader lower Thursday, moving sideways in a very narrow range, currently down 40pts (-0.9%). The expected bankruptcy filing of GM has remained in focus this morning, although it is mining stocks that are weighing heaviest on the index, pushed by weakness in the metals markets, and with Rio Tinto , BHP Billiton and Xstrata leading losses. Banks are also generally underperforming, with HSBC and Barclays hitting the index hardest. On the stronger side, oil stocks are
benefiting from gains made in crude prices this week, with BP and BG Group adding a few points to the FTSE.
Elsewhere in Europe, the CAC-40 is down 28pts (-0.9%), and Xetra-DAX is down 46pts (-0.9%).

UK CBI: May Retail Sales Volume -17 Vs +3 In Apr

Resistance 3:Y99.00
Resistance 2:Y97.80
Resistance 1:Y97.05
Current price: Y96.84
Support 1: Y95.50
Support 2: Y94.80
Support 3: Y94.20
COMMENTS: Dollar rallies, holding close to Y97.05. Key resistance comes at Y97.80. Break above will target at Y99.00 (50% Fibo of Y110.70 - Y87.00 decline).Support remains at Y95.50, then – on Y94.80. Stronger level comes near Y94.20 (trend support line from Jan 21).

Resistance 3:Chf1.1260
Resistance 2:Chf1.1180
Resistance 1:Chf1.1050
Current price: Chf 1.0897
Support 1:Chf1.0880
Support 2:Chf1.0800
Support 3:Chf1.0680
СOMMENTS: Dollar recovers Thursday, heading for a channel resistance line from Apr 22 at Chf1.1050. Break above will target Chf1.1180 and further - to Chf1.1260 (May 18 high). Minor support is near Chf1.0880. Stronger level comes around May 22 and 27 highs on Chf1.0800/10. Key level is near channel line on Chf1.0680.

Resistance 3:$1.6180
Resistance 2:$1.6080
Resistance 1:$1.5980
Current price: $1.5944
Support 1: $1.5860
Support 2: $1.5780
Support 3: $1.5720
COMMENTS: The sterling retreats after yesterday’s rally, heading for a key support at $1.5860 (23.6% Fibo of $1.5120 - $1.6080 rise). Below losses may widen to May 26 low on $1.5780, then – to $1.5720 (38.2%). Session lows present the resistance at $1.5980 with stronger level is on yesterday’s highs and channel line from Apr 28 on $1.6080. Break above will strengthen the bullish momentum and open the way to $1.6180.

- EMU May consumer confidence unchanged at -31, below expected (-30)
- EMU May industry confidence up to -34, below expected (-32)
- EMU May services confidence up to -23 vs April -24
- EMU May construction confidence -34 vs April -34
- EMU May retail sector sentiment up to -15 vs April -20

EMU May economic sentiment index up to 69.3

EMU May business climate index rises to -3.17 vs. April -3.26

Resistance 3: $1.4040
Resistance 2: $1.3980
Resistance 1: $1.3880
Current price: $1.3842
Support 1: $1.3770
Support 2: $1.3700
Support 3: $1.3620
COMMENTS: The euro retreats Thursday with strong support comes at $1.3770 (23.6% Fibo of $1.2280 - $1.4040 rally). Below correction may reach $1.3700 (channel support line from Apr 28). Further losses may widen to $1.3620. Resistance comes at session highs on $1.3880, then – at $1.3980. Stronger zone is at May 22 high on $1.4040/45.

Oil prices fell below $63 a barrel on Thursday, snapping three sessions of gains, as investor sentiment soured on worries that a potential recovery in the United States might be delayed because of the country's rising debt. U.S. equities fell on Wednesday as rising yields on U.S. government debt fuelled concern that businesses and consumers could face higher borrowing costs, which could hamper an economic recovery."Oil is tracking movements in the equities markets and there might be some concerns that perhaps the U.S. economy hasn't really bottomed out and a recovery would take longer than expected," said Ben Westmore, a commodities analyst at the National Australia Bank.
U.S. crude oil for July delivery fell to $63.27 a barrel, session's low at $62.75.

The yen fell the most in eight weeks against the dollar and declined versus the euro on speculation Japanese investors will buy more overseas assets on signs the global recession is easing.
The yen weakened after Japan’s Ministry of Finance said the nation’s investors boosted purchases of foreign bonds to the most in a month.
The yen also fell the most in a week against the euro as the Nikkei 225 Stock Average reversed earlier losses to gain 0.1%, boosting demand for riskier assets.
Japanese retail sales fell for an eighth month in April, reducing the appeal of the nation’s currency. Sales slid 2.9% from a year earlier after dropping a revised 3.8% in March, the Trade Ministry said.
The dollar traded near a one-week high against the euro on speculation General Motors Corp. may file for bankruptcy this week, renewing demand for the relative safety of the greenback.
Australia’s dollar rose toward a seven-month high against the U.S. currency on optimism the world economy is recovering, reviving demand for higher-yielding securities. New Zealand’s dollar gained after Standard & Poor’s raised its outlook on the country’s debt rating.

EUR/USD printed lows near $1.3790 before rose to current levels around $1.3870.

GBP/USD held within the range $1.5890/$1.5950 before refreshed earlier low to a new one at $1.5850. Later rate recovered to $1.5934.

USD/JPY rose from Y95.20 to Y97.00 after breaking Y96.80.

Thursday is full with economic reports, including UK CBI retail sales volume balance and US Durable goods orders at 12:30 GMT. Same tima US Labor Department releases its traditional Jobless claims data for the week to 23.05. At 14:00 GMT US New home sales numbers are due to come.

EUR/USD
Offers: $1.3840, $1.3850/55, $1.3860
Bids: $1.3800, $1.3765

GBP/USD
Offers: $1.5950/55, $1.5975/80
Bids: $1.5910/00, $1.5885/80

USD/JPY
Offers: Y97.20/25, Y97.50

EUR/GBP
Offers: stg0.8725/30
Bids: stg0.8690/80

KIWI
Offers: $0.6250/60

Japan's benchmark stock indices ended Thursday's session modestly higher, rallying from early lows, boosted by a weaker yen, which fell to a 1-week low against the US dollar. The Nikkei 225 was higher by 12.62 points, or 0.13%, to stand at 9451.39. The broader-based TOPIX was 2.74 points higher at 895.59.

Majors close
Nikkei +127.96 (+1.4%) 9438.77
Topix +9.08 (+1%) 892.85.
FTSE +4.51 (+0.1%) 4416.23
DAX +15.17 (+0.3%) 5000.77
CAC +24.77 (+0.76%) 3294.86
Dow -173.47 (-2.05%) 8300.02
NASDAQ -19.35 (-1.11%) 1731.08
S&P -17.27 (-1.90%) 893.06
NYMEX Crude Oil +1.00 (+1.61%) $63.14

Japanese stocks climbed after Nikon Corp. said it will cut jobs to stem losses and on growing speculation the nation’s property market has bottomed out.

Nikon jumped 3.5%. Nomura Real Estate Holdings Inc. soared 5% after Credit Suisse Group AG said the property manager’s operations are improving.
Toyota Motor Corp. rose 2.8% after U.S. consumer confidence increased more than forecast.
Mitsui Fudosan Co. leapt 4.2%. Smaller rival Mitsubishi Estate Co. gained 3.4%, while NTT Urban Development Co. soared 6.4%.

European stocks rose, as speculation the worst of the global recession is over overshadowed concern banks may need to raise additional capital.
Tesco Plc added 2.8%, leading gains by retailers as investors sought shares of companies whose profits are more closely tied to economic growth. ITV Plc surged 13% after Goldman Sachs Group Inc. added the shares to its “conviction buy” list. Seadrill Ltd. jumped 9.4% after reporting profit that beat analysts’ estimates.
Seadrill added 9.4%. First-quarter net income dropped to $243.2 million, beating the $148 million average estimate of analysts.
Premiere AG soared 20%, the biggest advance since November, after Goldman Sachs raised its recommendation on Germany’s biggest pay-television company to “buy” from “neutral.”
Danisco A/S jumped 13% after raising its full-year earnings forecast.

Stocks in US were mixed Wednesday as investors looked past a report that showed existing home sales rose in April to focus on signs that General Motors will not be able to avoid bankruptcy.

Oil prices held at a six-month high above $62 a barrel.
Economy: Sales of existing homes increased 2.9% in April to 4.86 million homes sold, up from a downwardly revised pace of 4.55 million in March, according to the National Association of Realtors. Economists anticipated 4.65 million existing homes sold in the month.
Banks: The FDIC said that the number of banks on its so-called "problem bank" list jumped to 305 during the first three months of the year, from 252 in the fourth quarter of last year. This is the highest level of troubled institutions since 1994.
Autos: GM confirmed reports that bondholders rejected an offer from the company to trade $27 billion of debt for equity stakes. This makes it much more likely that GM will declare bankruptcy. GM shares fell 8%.
Companies: Monsanto, the world's largest seed company, said it expects 2009 fiscal-year results to be at the low end of its earnings forecast. The company said stronger than expected competition in the herbicides business prompted the warning.
Staples reported a one-third drop in quarterly profit to $147 million, or 20 cents per share, but still managed to beat analyst expectations.

Data released
06:45 France Consumer confidence (May) -40 -40 -41
06:50 France Business confidence (May) 72 73 71
07:30 Italy Consumer confidence (May) 104.9 104.0 104.9
14:00 USA Existing home sales (April), mln 4.68 4.65 4.55 (4.57)
14:20 Germany CPI (May) preliminary -0.1% 0.1% 0.0%
14:20 Germany CPI (May) preliminary Y/Y 0.0% 0.2% 0.7%
14:20 Germany HICP (May) preliminary Y/Y -0.1% 0.2% 0.7%
23:50 Japan Retail sales (April) Y/Y -2.9% - -3.8 (-3.9)%

The pound rose above $1.60 for the first time in almost seven months as speculation the worst of the financial crisis is over stoked demand for assets denominated in the British currency.
A 19% drop in the pound versus the dollar in the past 12 months made it attractive to investors who think government stimulus packages will pull the global economy out of the recession. The pound climbed almost 2% since it broke through its 200-day moving average versus the dollar on May 20, a sign to investors who use charts to plot currency moves that sterling will extend its advance.
Against the euro, the pound gained 3.3% this month. It may appreciate to 85 pence per euro by year-end, according to Bank of America-Merrill Lynch.
The dollar gained for a second day versus the euro after the Treasury’s record-tying $40 billion sale of two-year notes yesterday drew the most demand since November 2006 from a group of investors that includes foreign central banks.

EUR/USD tested $1.4000 overnight, but failed to break above and retreated to $1.3890. Recover to $1.3990 was short-lived and the rate declined to $1.3820.

GBP/USD initially consolidated within the $1.5920/70 range before rallied to $1.6080. Bullish momentum waned soon and rate back off to $1.5950.

USD/JPY printed highs on Y95.50 before stood back to Y94.70. Later rate recovered to Y95.30.

Resistance 3:Y99.70
Resistance 2:Y99.00
Resistance 1:Y97.80
Current price: Y97.00
Support 1: Y95.50
Support 2: Y94.80
Support 3: Y94.20
COMMENTS: Dollar rallies, holding close to Y97.80. Key resistance comes at Y98.90/00 (50% Fibo of Y110.70 - Y87.00 decline). Neat target is May 07 high on Y99.70. Support remains at Y95.50, then – on Y94.80. Stronger level comes near Y94.20 (trend support line from Jan 21).

Resistance 3:Chf1.1260
Resistance 2:Chf1.1180
Resistance 1:Chf1.1050
Current price: Chf 1.0926
Support 1:Chf1.0880
Support 2:Chf1.0800
Support 3:Chf1.0680
СOMMENTS: Dollar recovers Thursday, heading for a channel resistance line from Apr 22 at Chf1.1050. Break above will target Chf1.1180 and further - to Chf1.1260 (May 18 high). Minor support is near Chf1.0880. Stronger level comes around May 22 and 27 highs on Chf1.0800/10. Key level is near channel line on Chf1.0680.

Resistance 3:$1.6180
Resistance 2:$1.6080
Resistance 1:$1.5980
Current price: $1.5943
Support 1: $1.5860
Support 2: $1.5780
Support 3: $1.5720
COMMENTS: The sterling retreats after yesterday’s rally, heading for a key support at $1.5860 (23.6% Fibo of $1.5120 - $1.6080 rise). Below losses may widen to May 26 low on $1.5780, then – to $1.5720 (38.2%). Session lows present the resistance at $1.5980 with stronger level is on yesterday’s highs and channel line from Apr 28 on $1.6080. Break above will strengthen the bullish momentum and open the way to $1.6180.

Resistance 3: $1.4040
Resistance 2: $1.3980
Resistance 1: $1.3850
Current price: $1.3827
Support 1: $1.3770
Support 2: $1.3700
Support 3: $1.3620
COMMENTS: The euro retreats Thursday with strong support comes at $1.3770 (23.6% Fibo of $1.2280 - $1.4040 rally). Below correction may reach $1.3700 (channel support line from Apr 28). Further losses may widen to $1.3620. Resistance comes at session highs on $1.3850, then – at $1.3980. Stronger zone is at May 22 high on $1.4040/45.

GERMANY: April seasonally adjusted ILO employment dropped by 39,000 to 40.12 million

Major European bourses are initially seen trading lower Thursday, weighed by the late slide in the US: the FTSE down 47, the DAX down 55, the CAC down 42 and the Eurostoxx 50 down 32.

High Low Close
EUR/USD 1.3998 1.3826 1.3826
GBP/USD 1.6083 1.5921 1.5953
USD/JPY 95.48 94.66 95.32
USD/CHF 1.0924 1.0810 1.0921

EUR/JPY 133.48 131.80 131.83
EUR/GBP 0.8782 0.8651 0.8664
GBP/JPY 153.06 151.17 152.13
GBP/CHF 1.7475 1.7256 1.7436

Change % Change Last
Nikkei +127.96 (+1.4%) 9438.77
Topix +9.08 (+1%) 892.85.
FTSE +4.51 (+0.1%) 4416.23
DAX +15.17 (+0.3%) 5000.77
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06:00 UK Nationwide house price index (May) - -0.4%
06:00 UK Nationwide house price index (May) Y/Y - -15.0%
07:30 Italy Business confidence (May) 66.0 64.2
07:55 Germany Unemployment (May) seasonally adjusted +63K +58K
07:55 Germany Unemployment (May) seasonally adjusted, mln - 3.463
07:55 Germany Unemployment rate (May) seasonally adjusted 8.4% 8.3%
07:55 Germany Unemployment (May) seasonally unadjusted, mln - 3.585
07:55 Germany Unemployment rate (May) seasonally unadjusted - 8.6%
09:00 EU(16) Economic sentiment index (May) 68.8 67.2
09:00 EU(16) Business climate indicator (May) -3.00 -3.33
10:00 UK CBI retail sales volume balance (May) - +3%
12:30 USA Jobless claims (week to 23.05) - 631K
12:30 USA Durable goods orders (April) 0.5% -0.8%
12:30 USA Durable goods orders excluding transportation (April) - -0.6%
12:30 USA Durable goods orders excluding defence (April) - -0.6%
14:00 USA New home sales (April) 363K 356K
20:30 USA M2 money supply (18.05), bln - +8.9
23:30 Japan Nationwide CPI (April) - 0.3%
23:30 Japan Nationwide CPI (April) Y/Y - -0.3%
23:30 Japan Nationwide CPI ex fresh food (April) Y/Y - -0.1%
23:30 Japan Tokyo-area CPI (May) - -0.1%
23:30 Japan Tokyo-area CPI (May) Y/Y - -0.2%
23:30 Japan Tokyo-area CPI ex fresh food (May) Y/Y - 0.0%
23:30 Japan Unemployment (April) - 4.8%
23:30 Japan Household spending (April) real Y/Y - -0.4%
23:50 Japan Industrial output (April) preliminary - 1.6%
23:50 Japan Industrial output (April) preliminary Y/Y - -34.2%