# Offshore equity markets fell Friday, as a weak U.S. Non-Farm payrolls report compounded fears of a global economic slowdown. Both the EuroStoxx600 and the S&P500 fell 1%.
# U.S. Non-Farm payrolls recorded growth of 80,000 jobs against expectations of 100,000. Unemployment stayed static at 8.2%. The disappointing data was all the more worrying coming on the back of very weak global manufacturing data earlier in the week.
# The CRB (Commodities) Index fell over 2% in response, Crude Oil falling 3.5%, Copper falling 3% and Gold and Silver about 1.5%.
# U.S and German 10 year yields dropped back towards historical lows reaching 1.55% and 1.32% respectively as fund managers sought safety. Meanwhile the spread of non-core European bonds to German equivalents widened. Spanish-German 10-year bond yields surged more than 20bps to 563bps, close to their mid-June all-time highs.
# The EUR dropped to a 2 year low against the USD of 1.2270, a four year low against the GBP and a record low against the NZD.
# Chinese Premier Wen said the government will act to dampen property price gains. (With exports already falling any pressure to stop house price rises will make managing a ‘soft landing’ somewhat difficult).
The week ahead
# Big Chinese data dump probably the big focus this week. 9 July: JN current account; CH CPI/PPI; EU finance ministers meeting; 10 July: NZ QSBO business confidence; NZ retail data; UK RICS house price balance; AU NAB business confidence; UK IP, manufacturing production, & trade balance;11 July: AU home loans; US trade balance; US FOMC minutes; 12 July: NZ PMI; NZ food prices; AU employment; Bank of Japan meeting; EU ECB monthly report; EU IP; 13 July: CH IP, GDP, retail sales, & investment; JN IP; US PPI.
# Japan Current Account
# China CPI, PPI
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