Asian markets were mixed. The Nikkei 225 rose +0.95% following the general optimism on Greece. The Shanghai Composite continued its pullback, down -3.49% today and down about 24% from the high set on June 12.
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On Wednesday, the ECB left the level of its ELA supporting Greek banks unchanged. Bund yields rose to 0.847% and the German DAX fell -0.73%.
This morning’s economic data was lackluster. Initial Claims for the week of 6/27 rose to 281K. June Nonfarm Payrolls were up +223K following downward revisions to April and May. The Unemployment Rate fell to 5.3%, in part as the Labor Participation Rate reversed last month’s gain. May Hourly Earnings was revised down from +0.3% to +0.2%, and the June reading was flat. A report on May Factory Orders (-1.0%) was also below expectations.
Equities rallied on the number as yields on the 10-Year Note fell below 2.40% and the likelihood of a September rate hike from the Fed seemed to recede. The US$ moved lower, but so did gold, finishing at $1,163.50 Crude was unable to hold early gains and finished lower at $56.93.
After a strong start markets turned lower. Following a late recovery, they were narrowly mixed on light, pre-holiday volume.