DAILY

PSI20: -0.72% DAX30: +0.76% FTSE100: +0.45% S&P500: +0.37%

30th May 2013

NIKKEI225: -5.15%

Budget deficit is expected to increase given that more than a third of the total deficit allowed for the year was already spent. However, technicians say there is nothing to worry about and budget goals can still be reached. PSI 20 is down going against the current European trend. PT and Jernimo Martins had the major contribution to this performance. It is the second day in a row that PT stock price falls more than 3%. Consumer and Industrial index rise didnt avoid losses in the Portuguese stock market.

European stocks fell to a three-week low, paring a 12th straight month of gains, as investors awaited reports on American consumer confidence and business activity. Italys jobless rate reached a 36-year high in April as companies didnt hire staff amid pessimism about the outlook of an economy thats probably in its eighth quarter of recession. Consumer spending is declining after France slid into recession in the first quarter and as the country grapples with record joblessness.

Stocks ended modestly higher with the Dow recovering from its worst one-day drop in nearly four weeks, as the latest economic data suggested the Fed's bond-buying program would remain intact. U.S. economy expanded less than estimated in Q1 as cutbacks in government spending outshined the biggest gain in consumer purchases since 2010. GDP rose at a 2.4% annualized rate. The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but not enough to suggest a shift in the recent pattern of modest job gains.

Nikkei skidded below the 14,000 mark to a one-month low on Thursday, weighed down by a strengthening yen and volatile Japanese government bond yields (JGBs). Retailers and policymakers have high hopes for consumer spending in China driving profits and economic growth. And while on the rise, consumption is not getting there as fast as many had hoped. South Korea's industrial output in April expanded on monthly terms for the first time in 4 months, though the modest rate of expansion suggested that momentum for Korean economy remains subdued.

OIL (WTI 93.49 $/bbl; +0.69% / Brent 102.22 $/bbl; -0.01%): Oil rose as worse-than-expected economic data spurred speculation that the Fed would maintain stimulus measures. GOLD (1415.95 $/oz t; +1.71%): Gold climbed on speculation that the Fed will maintain bond purchases to bolster the U.S. economy, boosting demand for the precious metal as a store of value. WHEAT (697.88 $/bu; -0.36%): Wheat fell after Japan suspended imports from the U.S., where the government discovered an unapproved, genetically modified strain growing in an Oregon field.

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