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German Manufacturing Orders Fall in April

German Manufacturing Orders Fall in April

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German manufacturers started the second quarter on a weak note as orders for the manufacturing sector fell sharply in April. According to the data released by the German economics ministry, total orders for the manufacturing sector fell -2.00% on a seasonally adjusted basis from the previous month. Economists were expecting to see a contraction of only -0.60%. March's orders were revised higher, showing a 2.60% increase. The declines came due to a slide in capital goods orders from non-Eurozone countries. Foreign demand for German goods was also weaker. Domestic demand was stronger however.

 

 

Saudi Arabia Cuts Oil Prices to Europe, Hikes Prices for Asia


News reports on Monday showed that OPEC's largest producer, Saudi Arabia, cut oil prices to Europe but at the same time increased prices for its Asian customers. State owned Saudi Aramco reportedly sent an email to its Northwest customers in Europe that prices for light crude oil were now being offered at a discount of 35 cents a barrel, and a discount of 10 cents to customers in the Mediterranean for July delivery. For its Asian customers, the light sweet pricing was increased by 35 cents. The price adjustments follow last week's OPEC meetings where the members failed to reach an agreement and instead left the re-balance to the markets.

 

 

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 Janet Yellen’s Speech: July Rate Hike Still on the Table


Fed Chair Janet Yellen gave her opening remarks in Philadelphia yesterday, which were closely watched by investors. Yellen sounded optimistic on the prospects of US economic growth and maintained her stance that gradual rate hikes were appropriate. In her comments, she said that one shouldn't look too closely at a single jobs report in reference to the disappointing May nonfarm payrolls print. However, Yellen's speech missed the all important references to the timing of future rate hikes when she said that interest rates will probably need to rise "over time", as compared to her most recent speech at Harvard, where she said in the "coming months." The markets were little changed by her remarks and reflected no expectation of a rate hike in June.

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Japanese GDP Expected to be Revised Higher


The final revision to the first quarter GDP for Japan is expected to be revised higher to 0.50% growth, up from the previous estimates of 0.40% on a quarter over quarter basis. The annualized GDP is also expected to rise 1.90%, up from 1.70% previously. The upward revisions due to increased capital investment. Net exports contribution to GDP is expected to remain unchanged at 0.20%, marking a third consecutive month of positive contribution to the final number.

 

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The Reserve Bank of Australia Left Interest Rate Steady at 1.75%


The RBA kept its overnight rate unchanged at its policy meeting on Tuesday, leaving interest rates at record lows of 1.75%. The RBA cut the rates at its meeting in May last month. Banking officials took a more assertive stance to combat low inflation. The latest inflation expectations showed that consumer prices declined in May, keeping the option for more rate cuts on the table in the near term.

 

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