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Mr Bernanke Roils The Market
A busy day today with some surprising economic numbers and Mr Bernanke testifying at Congress' Joint Economic Committee. Starting in Japan April's Trade Deficit was the highest ever for that month at 878bln Yen because imports grew by 9.4% and exports by just 3.8% despite the weaker Yen. In the U.K. April Retail Sales collapsed 1.3% M/M, excluding fuel sales dropped 1.4%, taking the annual rate of growth to a pathetic +0.2%. Public sector net borrow…
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Fed testimony and minutes in spotlight.
Dovish comments from Bullard and Dudley support equities.
Credit spreads widen, peripheral European bonds mixed.
Pound sterling slides on softer UK inflation data; EUR/CHF breaks above 1.25.
Today’s focus is on FOMC meeting minutes and Chairman Bernanke’s testimony.
MACRO
USA: Bullard and Dudley reiterate support for stimulus
Two regional Fed presidents, James Bullard and W…
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