Tuesday, June 1, 2010

Quick Notes for the Day - June 1

ISM and Construction Data Help Markets Rebound - The Institute for Supply Management reported Tuesday that the ISM for May slipped to 59.7% from 60.4% in April, but this was still higher than expected. The 60.4% in April was the highest reading in six years, so the slight pull back was expected. The key employment index improved to 59.8 in May versus 58.5% in April with new orders 65.7% for May.

On the construction side, the Commerce Department said spending rose 2.7% in April to an annual rate of $869.09 billion. Expectations had been that spending would not rise at all and was the second unexpected gain and highest since August 2000.

Manufacturing expands for 10th straight month - Reuters - "The manufacturing sector expanded in May for a 10th straight month though at a touch slower pace, while construction spending posted its largest gain in nearly 10 years in April, pointing to strength in the economic recovery."

Bank of Canada Raises Interest Rates by 0.25 - The Bank of Canada announced a 0.25 point increase in its overnight interest rate to 0.5%. The BOC is now the first G8 country to raise its rate since the onset of the global financial crisis and recession. The Canadian dollar fell steeply on the day. The U.S. dollar rose 1.2% to $CAD1.0549.

Euro falls versus dollar, yen - Reuters - "The euro fell against the dollar and the yen on Tuesday, hitting a four-year low..."

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