Morning Call For May 6, 2015

OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM15 +0.24%) this morning are up +0.18% and European stocks are up +0.74% ahead of this morning’s U.S. Apr ADP employment change that may gauge whether the U.S. economy recovered from a winter slowdown. European stocks also received a boost after the Eurozone Apr Markit composite PMI was revised higher by +0.4 to 53.9 from the originally reported 53.5. The 10-year Greek bond yield rose to a 3-session high of 11.25% after Greek President Tsipras blamed international creditors for a failure to end an impasse in his country's bailout talks. The next meeting of European finance ministers is on Monday, May 11 to discuss Greece's debt situation and a breakdown of talks then may prompt the ECB to tighten collateral rules on Greek debt. Asian stocks closed lower: Japan closed for holiday, Hong Kong -0.41%, China -1.62%, Taiwan -0.02%, Australia -2.31%, Singapore -0.33%, South Korea -1.23%, India -2.63%.

Commodity prices are mixed. Jun crude oil (CLM15 +2.33%) is up +2.37% at a 4-3/4 month high and Jun gasoline (RBM15 +1.19%) is up +1.11% at a 5-3/4 month high on expectations that today's EIA data will show crude supplies at Cushing, OK, the delivery point of WTI futures, fell -580,000 bbl. Metals prices are lower. Jun gold (GCM15 -0.28%)is down -0.42%. Jul copper (HGN15 -0.72%) is down -0.73%. Agriculture prices are higher.

The dollar index (DXY00 -0.27%) is down -0.29%. EUR/USD (^EURUSD) is up +0.43%. USD/JPY (^USDJPY) is down -0.07%.

Jun T-note prices (ZNM15 -0.15%) are down -3.5 ticks at a 1-1/2 month low on carry-over weakness from the plunge in German bund prices to a 4-month low.

According to two people familiar with the matter, the ECB will discuss today whether to raise discounts on the collateral Greek banks pledge in exchange for emergency funding as well as how much more Emergency Liquidity Assistance to offer Greek banks.

Minneapolis Fed President Kocherlakota said "softening" of the U.S. economy in Q1 "is a matter for some concern" and underscores his view that the Fed should not raise rates until 2016.

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