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New Zealand Unemployment Rate Rises To 5.8% In Q1

The unemployment rate in New Zealand came in at a seasonally adjusted 5.8 percent in the first quarter of 2015, Statistics New Zealand said on Wednesday. That missed forecasts for 5.5 percent, and it was up from 5.7 percent in the previous three months. Employment was up 0.7 percent on quarter - also missing expectations for 0.8 percent and down from 1.2 percent in Q4. On a yearly basis, employment added 3.2 percent versus forecasts for 3.3 percent and down from 3.5 percent in the previous three months. The participation rate was a record high 69.6 percent - beating forecasts for 69.4 percent, which would have been unchanged.

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Fitch: China's Slowdown As Expected, But Downside Risks Mount

Fitch Ratings says China's slower economic growth in 1Q15 is broadly as expected given efforts to rein in credit growth since mid-2014. However, downside risks from the ongoing real-estate correction and  from weaker corporate hiring intentions will likely lead to further policy easing later in 2015. "China Macro Update - May 2015"

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New Zealand Overall Credit Card Spending Declines 1.1% In April

Overall credit card spending in New Zealand slipped a seasonally adjusted 1.1 percent on month in April, Statistics New Zealand said on Monday - following the downwardly revised 1.2 percent increase in March (originally 1.3 percent). Retail credit card spending dipped 0.7 percent on month in April to NZ$4.5 billion, unchanged from the previous month after it was revised up from -0.8 percent). Retail card spending also was up NZ$167 million or 3.9 percent on year. "After removing seasonal effects, spending fell in four of the six retail industries," business indicators manager Neil Kelly said. "The largest fall came from the durables industry." Transactions in the core retail industries were down 0.8 percent on month after gaining 0.6 percent a month earlier. The total value of electronic card spending - including the two non-retail industries (services and other non-retail) - was down 1.1 percent. This fall follows a 1.2 percent rise in March.

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New Zealand Food Prices Slip 0.3% In April

Food prices in New Zealand were down 0.3 percent on month in April, Statistics New Zealand said on Wednesday. That follows the 0.1 percent increase in March and the 0.7 percent fall in February. "More discounting on items such as biscuits, snack foods, and sauces contributed to lower grocery prices. This was countered by higher prices for tomatoes, beef, and chicken," prices manager Chris Pike said. Grocery food prices fell 0.9 percent, influenced by lower prices for cakes and biscuits, snack foods, and sauces, the bureau said. The price of cakes and biscuits was influenced by more discounting on biscuits. In April, fruit and vegetable prices fell 1.2 percent. Fruit prices (down 2.9 percent) were influenced by seasonally lower prices for kiwifruit. Prices for apples also fell, with a continued supply of new season varieties. These price falls were partly offset by seasonally higher prices for mandarins. Vegetable prices (up 0.1 percent) were influenced by seasonally higher prices for tomatoes, partly offset by lower prices for carrots and cabbage. The average price of tomatoes in April 2015 was $4.81 per kilo, up from $3.49 per kilo in March 2015. This compares with an average price of $3.98 in April 2014. In April, a 0.4 percent rise in meat, poultry, and fish prices was influenced by higher prices for beef (up 4.5 percent), which are now at their highest level. Prices for chicken (up 1.8 percent) also rose. These price rises were partly offset by lower prices for processed meat (down 2.1 percent). Higher prices were also recorded for restaurant meals and ready-to-eat food (up 0.2 percent) and non-alcoholic beverages (up 0.3 percent), influenced by less discounting of packaged coffee. On a yearly basis, food prices climbed 1.0 percent, slowing from the 1.9 percent gain in the previous month. Fruit and vegetable prices increased 5.3 percent, reflecting higher prices for lettuce, potatoes, bananas, strawberries, and tomatoes. Prices for avocados, cucumber, and mushrooms decreased in the year. Restaurant meals and ready-to-eat food prices increased 1.6 percent. Meat, poultry, and fish prices increased 2.0 percent, reflecting higher prices for beef (up 9.4 percent) and chicken (up 2.3 percent). Grocery food prices decreased 1.5 percent in the year to April, influenced by lower prices for bread, cheese, snack foods, and butter. These price decreases were partly offset by higher prices for chocolate and fresh milk.

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Latam - Bcch and Bcrp Likely to Keep Rates Unchanged

The Banco Central de Chile (BCCh) is expected to keep rates at 3.0% on 14 May. The April minutes show that the only policy option discussed was keeping rates on hold, which suggests a united board with a neutral bias. Activity has been weak but sentiment began to improve in April. President Bachelet's cabinet reshuffle could boost business confidence, allowing stronger growth in H2-2015. Banco de la Reserva de Perú (BCRP) will also decide rates on 14 May. No changes is expected, but a continued easing bias. The weaker Peruvian nuevo sol (PEN) has pressured inflation, which is near the top of the target range. Peru's April 2016 presidential elections could begin to have a negative impact on business confidence in H2-2015. BCRP may be saving its bullets for cuts later this year or early next year.

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Japan Domestic Corporate Goods Prices Add 0.1%

An index measuring domestic corporate goods prices in Japan was up 0.1 percent on month in April, the Bank of Japan said on Friday, standing at 103.6. That was in line with expectations and down from 0.3 percent in March. On a yearly basis, prices dropped 2.1 percent - also matching forecasts following the 0.7 percent gain in the previous month. Export prices were up 0.1 percent on month and down 4.5 percent on year, the data showed, while import prices lost 1.3 percent on month and 17.8 percent on year.

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Americas Roundup: - Second Weekly Gain for the Pound, up Almost 4% boosted by Uk Election Results and a Weak Greenback - 18 May, 2015

EUR/USD: The European currency has clinched its fifth consecutive week with gains vs. the US dollar, its main source of upside being the beleaguered dollar. Today's miserable results from Industrial Production, Capacity Utilization and the Reuters/Michigan index (in 7-month lows) added to the set of data disappointments. EUR/USD is currently trading around 1.1452, a step closer to 1.15. Resistances are located at 1.1479, 1.1508 and 1.1536, while supports are seen at 1.1375, 1.1347 and then 1.1318. Option expiries for Monday 18th May: 1.1300 (469M), 1.1450 (531M) GBP/USD reached levels on top of 1.5800 but failed to hold on to gains. The pair retreated from the highs and found support at 1.5735. GBP/USD is hovering around 1.5735, around 300 pips above the level it closed last Friday. It is the second weekly gain in a row for the pound versus the US dollar, in which it has risen almost 4% boosted by the UK election results and a weak greenback. UK inflation data (Tue), BoE's minutes (Wed), retail sales report (Thurs) and FOMC minutes (Wed) in focus next week. NZD/USD: kiwi up against the US dollar during the American session but unable to climb back above 0.7500. The pair dropped during the Asian session and bottomed on European hours at 0.7428, but rebounded after the release of weak economic data from the US. During the NY session the pair peaked at 0.7494 and was trading at 0.7485/90, unchanged for the day and also for the week. Option expiries for Monday 18th May: 0.7580-85 (400M) USD/JPY faded below the 120 handle again. Rally was short lived where supply met in the 119.90's. The pair is currently trading at 119.31 with a high of 119.93 and a low of 119.15. Next hurdle is located in 120.82/84 area. Through 119.15, to the downside, 118.80 and 118.40 come in as next key supports. On the calendar next week, we have the FOMC Minutes on Wednesday 20th May. Option expiries for Monday 18th May: 119.00 (500M), 120.00 (793M), 121.00 (1.2BLN) USD/MXN is falling on Friday for the fourth day in a row and is consolidating below an important short term support level located around 15.10. USD/MXN reached levels under 15.00 for the first time in a month. The peso gained momentum and pushed USD/MXN to 14.97, the lowest level since April 9. From there the pair rebounded and rose back above 15.00. Currently is trading at 15.01, down 0.53% for the week and 2.50% below the level it reached on Monday, when it peaked at 15.42.

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Singapore NODX Advances 2.2% In April

Non-oil domestic exports in Singapore added 2.2 percent on year in April, International Enterprise Singapore said on Monday. That follows the 18.5 percent surge in March as an expansion in non-electronic NODX outweighed the decline in electronic NODX. On a seasonally adjusted monthly basis, NODX tumbled 8.7 percent in April following the upwardly revised 23.1 percent spike in March (originally 23.0 percent). NODX came in at a seasonally adjusted S$14.5 billion in April, down from S$15.8 billion in the previous month.

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Australia Leading Index Slips In March - Conference Board

A leading economic index for Australia was down 0.1 percent in March, the latest survey from the Conference Board showed on Tuesday - following the 0.5 percent increase in February. The leading index slid for the first time after three straight months of gain. Through the last six months, the index added 1.1 percent (about a 2.1 percent annual rate), a reversal its contraction of 1.3 percent (about a -2.7 percent annual rate) over the previous six months. The coincident index added 0.5 percent after rising 0.4 percent in the previous month.

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Euro-Area Economy Is Strong, But Some Headwinds are Returning

Euro-area GDP growth in Q1-2015 outpaced the US and the UK: the picture is emerging of a domestic-demand-driven recovery, supported by structural changes (banks have cleaned up their balance sheets, governments have cut fiscal deficits and - in some countries - have reformed labour and product markets), external stimulus (lower oil prices, a more competitive euro - EUR) and a cyclical upswing. Standard Chartered says they remain positive on the outlook, but anticipate that some headwinds will offset the stimulus from European Central Bank (ECB) quantitative easing (QE). Oil prices are rising and will likely start to take headline inflation back towards target later in H2, muting consumer spending. "Some ECB Governing Council members may argue for QE to be cut short, but we expect bond-buying to continue at least until September 2016 and probably beyond: core inflation is likely to remain low, given the output gap", added Standard Chartered.

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Japan Manufacturing Sector Expands In May - Markit

The manufacturing sector in Japan swung back to expansion in May, according to Thursday's preliminary survey from Markit Economics - which showed a PMI score of 50.9. That beat forecasts for a score of 50.3, and it was up from 49.9 in April. It also moves back above the boom-or-bust line of 50 that separates expansion from contraction. Among the individual components of the survey, the output index jumped to 51.7 from 49.3 in April, while production also rose at a moderate pace. Operating conditions improved slightly, the data showed.

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Boj Is expected to Leave Monetary Policy steady Today

The Bank of Japan is expected to leave monetary policy steady today. Going forward, the BoJ has set the hurdle very high for easier policy and it is noted that political pressure is also abating. "We suggest that an imminent policy shift is even less likely than the consensus view amongst analysts" says RBC Capital Markets. Earlier in the week, the Nikkei reported that the BOJ is considering raising its economic assessment in its MPS. If so, it would be the first upgrade in almost two years.

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New Zealand April Trade Surplus NZ$123 Million

New Zealand posted a merchandise trade surplus of NZ$123 million in April, Statistics New Zealand said on Tuesday - representing 3.0 percent of exports. The headline figure beat forecasts for a surplus of NZ$98 million following the NZ$631 million surplus in March. Exports were down NZ$240 million or 5.5 percent on year to NZ$4.17 billion versus forecasts for NZ$4.27 billion and down from NZ$4.93 billion in the previous month. Milk powder, butter, and cheese exports led the fall, down 27 percent (NZ$323 million) from April 2014, due to lower quantities for whole milk powder and lower prices overall. However, the quantity of dairy products exported rose 1.2 percent overall, led by whey, cheese, and butter. This offset the fall in whole milk powder quantity. "The value of whole milk powder we sent to China in April 2015 was a fifth of the April 2014 value," international statistics manager Jason Attewell said. "Volumes were a third of what they were in April 2014, and lower prices made up the rest of the fall in value." Other significant commodity group changes were fruit exports, up NZ$62 million, and crude oil exports, down NZ$63 million from April 2014. Imports added an annual 2.6 percent or NZ$104 million to NZ$4.04 billion versus expectations for NZ$4.12 billion and down from NZ$4.30 billion a month earlier. The increase was led by transport equipment (aircraft and parts). Consumption goods rose NZ$54 million, led by food and beverages. For the year ended April 2015, the annual trade deficit was NZ$2.6 billion. This is the largest annual trade deficit since the year ended June 2009 (NZ$3.1 billion).

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Boc to Maintaining Its Overnight Lending Rate at 0.75

The Bank of Canada (BoC) will release its post-meeting statement at 10:00 ET on 27 May. There is no press conference. The overnight lending rate is expected to be unchanged at 0.75%, in line with all analysts polled by Bloomberg. Standard Chartered says they have recently revised their BoC rate call to 'unchanged' until 2017 from previously expecting two further rate cuts. While recent data has been mixed, the BoC sees better prospects ahead. The BoC continues to expect the January rate cut to have stimulated activity, while it sees green shoots in non-oil exports and investment, along with a boost from US growth. It also sings the praises of a resilient labour market and elevated entrepreneurship; it believes in the economy's continued progress in rebalancing away from the commodity sector. This optimistic tone was on display in Governor Poloz' 19 May speech. The BoC's 27 May statement will continue on this wavelength: while noting recent weaker data, it should still emphasise the better outlook. It should continue to point to "full capacity" being reached by end-2016. "The signal therefore will be that rates are firmly on hold for now, in our view. We expect rates to be on hold until at least 2017", says Standard Chartered.

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Japan Core Inflation Likely remained 0%; Ip may have edged Up

Japan will release key April economic data on 29 April, including core inflation, industrial production (IP), and job data. Core inflation is expected to have dropped to 0.0% y/y in April from 2.2% in March as the base effect due to the April 2014 sales tax hike has started to wane. A 2% inflation target remains a distant goal for the Bank of Japan, and it is believed that the bank needs to ease still further in H2-2015. IP likely rebounded by 1.0% m/m in April after declining for two straight months. Q1 GDP showed better-than-expected investment readings, which may imply a gradual pickup in business activity. "We expect the unemployment rate to have stabilised at 3.5% in April, with the job-to-applicant ratio rising to 1.16 from 1.15 prior", says Standard Chartered.

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Us Non-Farm Payrolls Likely to rise in May

Next week is a big US data week, with non-farm payrolls, the ISM manufacturing survey, April personal consumption expenditure and inflation data. Regional business surveys have remained mixed lately, and the ISM manufacturing survey is expected to have been stable at 51.5, suggesting still-meagre industrial activity growth (services should continue to do most of the heavy lifting near-term). Standard Chartered notes: We forecast April core PCE inflation - the Fed's preferred measure - to have remained at 1.3% y/y. We think the labour market remained resilient despite recent weaker US data, and we forecast a US payroll gain of 240,000, a touch more than the 223,000 gain in April. Our optimism is supported by recent services surveys showing still-healthy employment intentions, and initial jobless claims touching 15-year lows. We see the unemployment rate staying at 5.4%. This should keep the Fed on track to raise rates later this year (our long-held view is that September's meeting is the most likely time).

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Canadian dollar hits 1-1/2 month trough against US dolla

The Canadian dollar surpassed a sharp retreat versus the US dollar Monday, affected by oil prices that slid on speculations OPEC production levels will remain elevated. US crude prices went up 0.05% at $60.33, but Brent crude erased 0.84% to $65.01. The 2nd quarter will be better… We all need to see numerous figures before we are 100% “convinced that core assumption is correct,” said Greg Anderson, Global Head of Foreign Exchange Strategy at BMO Capital Markets. The loonie closed at 79.78 US cents from Friday's 80.41 US cents. On Friday, the Organization of the Petroleum Exporting Countries (OPEC) will hold its semiannual meeting, which is awaited to retain production at high levels.

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Moody's: the French Market Shows That Bank Disintermediation Is a Viable Way Forward for European Sme Clos

In the context of increasing bank disintermediation in Europe, GIAC Gestion SAS' recent cash flow CLO transaction is an example of a viable way forward for European SME CLOs, says Moody's Investors Service in a new report published today. "FCT GIAC Obligations Long Terme II (GIAC OLT II) illustrates how securitisation can finance SMEs and mid-caps without the direct involvement of an originating bank and its unique features ensure the alignment of interests between the manager, investors and obligors," observes Monica Curti, a Moody's Vice President -- Senior Analyst and author of the report.  The securitisation has unique features compared with standardised European collateralised loan obligations (CLOs) and granular SME securitisations. It uses its low cost of funding to provide cheaper financing to SMEs and mid-caps while providing strong protection against adverse portfolio selection. Compared to European BSL CLOs 2.0. the structure has additional challenges, relating to the assets securitised and structural features such as the long two-year ramp-up period. "GIAC Gestion's transactions have performed in line with expectations, despite the recession in France" Ms Curti notes. Defaults indeed remained limited during the credit crunch and often resulted from the fact that French banks decided to cut financing to companies (i.e., on banking loans originated outside of GIAC's transactions). This shows that SME financing remains linked to the banking system, albeit indirectly. The new report: "The French Market Shows That Bank Disintermediation Is a Viable Way Forward for European SME CLOs," GIAC OLT II is a securitisation of bonds from French small and medium-sized enterprises (SMEs) and from companies with higher market capitalisation (mid-caps).

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US dollar slides as ECB retains policy, Bund yields extend gain

The US dollar touched its weakest level versus the euro in more than two weeks Wednesday, following the European Central Bank retained its monetary policy amidst recent market volatility and as Bund yields prolonged its advance. ECB President Mario Draghi said the central bank kept interest rates and saw no reason to modify the policy stance. Draghi's remarks confirms the eurozone “was moving in the right direction,” said Eric Viloria, Currency Strategist at Wells Fargo Securities. Also, the benchmark 10-year Bund yields reached 0.89%, the highest since October 2014. The dollar closed at $1.12695 per euro following it hit $1.2855. Against the Japanese yen and Swiss franc, the greenback was at ¥124.300 and 0.93480 franc, respectively.

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Moody's Assigns Caa2 Debt Ratings to the Province of Buenos Aires's 9.95% due 2021 Senior unsecured Notes in Usd

Moody's Investors Service has assigned a Caa2 (Global Scale Foreign Currency) ratings to the Senior Unsecured Notes to be issued by the Province of Buenos Aires for up to USD1,033 million approximately. The ratings are in line with the province's long term foreign currency issuer ratings, which carry a negative outlook. RATINGS RATIONALE On June 2, 2015 the Province of Buenos Aires priced some USD500 million of these new Notes at a 9.95% coupon rate.The bond issuance has been authorized by the Provincial Law Nº14652, by Governor's Decree Nº59 of 2015 and by Resolution Nº106 of the provincial Ministry of Economy. The Province of Buenos Aires will use the proceeds to prepay outstanding provincial debt as well as to fund infrastructure and/or social projects during 2015. At the same time, the Province launched a bond exchange offer for up to USD500 million under a USD1,050 million 11.75% coupon rate Notes maturing in October 2015. After the settlement of the first tranche of these new Notes for USD500 million and conclusion of the mentioned exchange, both tranches will be consolidated and will form a single bond series of up to USD1,033 million. The rated bonds, which constitute direct, general, unconditional and unsubordinated obligations of the province, will be denominated and payable in US dollars with a maturity of six years. The bonds will amortize in two annual installments equivalent to 50% of the outstanding principal in 2020 and in 2021 and pay 9.95% annual interest rate on a semi-annual basis. The bonds will be subject to the State of New York Law. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period nor anticipates changes in the main conditions that the bonds will carry. Should issuance conditions and/or final documentation of these bonds deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. WHAT COULD CHANGE THE RATING UP/DOWN Given the negative outlook on the issuer ratings, Moody's does not expect upward pressures in the Province of Buenos Aires's ratings in the near to medium term. However, a change in Argentina's sovereign outlook back to stable could lead to a change in the outlook back to stable of the Province of Buenos Aires. Conversely, a sharp deterioration of the Province of Buenos Aires's financial results, coupled with materially higher debt levels could add downward pressure to the assigned ratings. The province of Buenos Aires could also be downgraded if the negative outlook on the sovereign rating materializes into a rating downgrade. The principal methodology used in this rating was Regional and Local Governments published in January 2013.

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Moody's Assigns Caa2 Debt Ratings to the Province of Buenos Aires's 9.95% due 2021 Senior unsecured Notes in Usd

Moody's Investors Service has assigned a Caa2 (Global Scale Foreign Currency) ratings to the Senior Unsecured Notes to be issued by the Province of Buenos Aires for up to USD1,033 million approximately. The ratings are in line with the province's long term foreign currency issuer ratings, which carry a negative outlook. RATINGS RATIONALE On June 2, 2015 the Province of Buenos Aires priced some USD500 million of these new Notes at a 9.95% coupon rate.The bond issuance has been authorized by the Provincial Law Nº14652, by Governor's Decree Nº59 of 2015 and by Resolution Nº106 of the provincial Ministry of Economy. The Province of Buenos Aires will use the proceeds to prepay outstanding provincial debt as well as to fund infrastructure and/or social projects during 2015. At the same time, the Province launched a bond exchange offer for up to USD500 million under a USD1,050 million 11.75% coupon rate Notes maturing in October 2015. After the settlement of the first tranche of these new Notes for USD500 million and conclusion of the mentioned exchange, both tranches will be consolidated and will form a single bond series of up to USD1,033 million. The rated bonds, which constitute direct, general, unconditional and unsubordinated obligations of the province, will be denominated and payable in US dollars with a maturity of six years. The bonds will amortize in two annual installments equivalent to 50% of the outstanding principal in 2020 and in 2021 and pay 9.95% annual interest rate on a semi-annual basis. The bonds will be subject to the State of New York Law. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period nor anticipates changes in the main conditions that the bonds will carry. Should issuance conditions and/or final documentation of these bonds deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. WHAT COULD CHANGE THE RATING UP/DOWN Given the negative outlook on the issuer ratings, Moody's does not expect upward pressures in the Province of Buenos Aires's ratings in the near to medium term. However, a change in Argentina's sovereign outlook back to stable could lead to a change in the outlook back to stable of the Province of Buenos Aires. Conversely, a sharp deterioration of the Province of Buenos Aires's financial results, coupled with materially higher debt levels could add downward pressure to the assigned ratings. The province of Buenos Aires could also be downgraded if the negative outlook on the sovereign rating materializes into a rating downgrade. The principal methodology used in this rating was Regional and Local Governments published in January 2013.

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Treasuries Pull Back Sharply In Response To Upbeat Jobs Data

Treasuries moved notably lower during trading on Friday, more than offsetting the rebound seen in the previous session. After falling sharply in early trading, bond prices regained some ground but remained firmly in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped by 9.5 basis points to 2.402 percent. The increase extended a recent upward move by the ten-year yield, which reached its highest closing level in eight months. Treasuries came under pressure in response to the Labor Department's upbeat monthly jobs report, which added to concerns about the outlook for interest rates. The report said non-farm payroll employment jumped by 280,000 jobs in May compared to economist estimates for an increase of about 225,000 jobs. While the increase in employment in April was downwardly revised to 221,000 jobs from 223,000 jobs, the employment growth in March was upwardly revised to 119,000 jobs from 85,000 jobs. With these revisions, the Labor Department said employment gains in March and April combined were 32,000 more than previously reported. The report also said the unemployment rate inched up to 5.5 percent in May from a nearly seven-year low of 5.4 percent in April, but the uptick primarily reflected an increase in the size of the labor force. Rob Carnell, chief international economist at ING, said, "Just when all the Fed speakers were sounding more and more cautious, in comes a strong labor market report and puts thoughts of tighter policy back on the agenda." Carnell said the Federal Reserve is still unlikely to raise interest rates at its next meeting later this month, although he said a third quarter rate hike looks like a decent bet. The economic calendar for next week starts off relatively quiet, although key reports on retail sales and producer prices are likely to be in focus later in the week. Bond traders are also likely to keep an eye on the results of the Treasury Department's auctions of three-year and ten-year notes and thirty-year bonds. The Treasury is due to auction $24 billion worth of three-year notes next Tuesday, $21 billion worth of ten-year notes next Thursday and $13 billion worth of thirty-year bonds next Thursday.

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US dollar strengthens on stronger than expected jobs data

The US dollar accelerated on Monday as firm US jobs data amplified bets the Federal Reserve will raise interest rates in September. According to the Labor Department, nonfarm payrolls leaped 280,000 in April, while unemployment rate rose to 5.5% in May. The greenback closed at $1.1108 per euro from last week's $1.1380. Against the Japanese yen, the dollar stood at ¥125.66. Payrolls data mark the case for a sturdy dollar. The markets could speculate “Fed might raise rates even twice this year,” said Masatoshi Omata, Senior Manager of Market Trading at Resona Bank. On Friday, New York Fed President William Dudley said he still anticipates the US central bank to increase rates later this year although he is concerned regarding the progress in the labor market.

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Japan M2 Money Stock Jumps 4.0% In May

The M2 money stock in Japan climbed 4.0 percent on year in May, the Bank of Japan said on Tuesday - coming in at 906.7 trillion yen. That exceeded forecasts for an increase of 3.6 percent, which would have been unchanged from the April reading. The M3 money stock was up 3.3 percent on year to 1,221.3 trillion yen - also beating expectations for 3.0 percent, which also would have been unchanged. The L money stock advanced 4.3 percent on year to 1,610.9 trillion yen after gaining 4.0 percent in the previous month.

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New Zealand May Retail Credit Card Spending Climbs 1.2%

The total number of credit card transaction in the retail industries gained a seasonally adjusted 1.2 percent on month in May, Statistics New Zealand said on Wednesday - worth NZ$4.6 billion. That beat expectations for an increase of 0.9 percent following the 0.7 percent decline in April. The May reading was up NZ$143 million or 3.2 percent compared to the previous year. "Spending rose in five of the six retail industries," business indicators manager Neil Kelly said. "Fuel spending had the largest rise, continuing a recent run of increases, but is still below the levels seen before the price falls of late last year." Overall card transactions climbed 1.4 percent after slipping a downwardly revised 1.2 percent in the previous month (originally -1.1 percent). Transactions in the core retail industries (which exclude the vehicle-related industries) added 0.4 percent following a 0.9 percent fall in April. Trends for the total, retail, and core retail series have generally been rising since these series began in October 2002, the bureau said.

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