31. May 2012 06:02
The flight to safety has eased somewhat and bond yields are creeping back from – in some cases – record lows on the anticipation of better news from Europe and the U.S.
There’s speculation Irish voters will support measures to contain the debt crisis while gains in Spanish bonds damped demand for the safety of North American debt. And forecasts are calling for May job growth in the U.S.
The first indication of that growth is today’s ADP employment report which shows the pace of hiring increased but still came up 15,000 short of expectations with 133,000 jobs created. April’s increase was revised downward by 6,000 to 113,000. The U.S. government’s non-farm pay-roll data is due tomorrow and is expected to show an overall gain of 150,000 in May, and a rise in private payrolls of 160,000.
Meantime, the number of Americans applying for first-time jobless benefits hit its highest level in more than a month last week – up 10,000 to a seasonally adjusted 383,000.
And U.S. Q1 GDP grew 1.9%, down from the 2.2% initially reported and down from the 3% growth in Q4.
The only Canadian data today shows the seasonally adjusted current account deficit expanded by $0.6 billion to $10.3 billion in the first quarter. A lower surplus on goods was partly offset by a lower deficit on investment income.