REFERENCE RATES

CURRENCI ES
BOND YI ELDS
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MARKET RESEARCH
June 2
nd
June 6
th
Portuguese unemployment decreased
PSI-20 continued its positive trend, growing 3.95% this
week, mainly driven by positive economic indicators
news. The Portuguese government debt, calculated
through the optical of Maastricht, rose in late April to
225 900 million , representing an increase of 5.2
billion in the previous month. Additionally,
Portuguese Unemployment Rate dropped for the 12th
consecutive month. The rate was 14.6% in April,
compared to 14.8% in the previous month. On the
business front, JP Morgan sold holds of more than 2%
in EDP and reduced its stake to 1.505%. In the
meanwhile, BCP concluded this Thursday a new
securitization of credits totaling one billion euros.
Concluding, the quarterly review of the PSI-20 did not
dictate any change in the PSI-20 portfolio.

ECB cut interest rates
The main European Stock Index Markets grew last
week, with the exception of the FTSE-100 that fell
0.19%. This week, ECB host stimulus measures in an
effort to boost the euro zone's sluggish recovery and
halt a growth-sapping fall in prices. As expected, ECB
cut the rate on its deposit facility for banks from 0
percent to minus 0.10 percent. It also cut its main
interest rate from 0.25 percent to 0.15 percent.
Moreover, euro zones unemployment rate ticked
down to a seasonally adjusted 11.7% in April, from
11.8% in March, while Consumer price inflation in the
euro zone rose less than expected in May (YoY).
Finally, Eurostat said that GDP rose to a seasonally
adjusted 0.2%, the same rate as the preceding quarter.

Asian stocks hit 7-month high
Asian stocks rose to a seven-month high, with the
regional equities gauge posting a fourth weekly
advance, after the ECB announced a range of stimulus
measures. Growth in Chinas services sector retreated
to a 4-month low in May. Furthermore, Chinas non-
manufacturing PMI grew to 55.5 from Aprils 54.8,
while the manufacturing PMI climbed to a 5-month
high of 50.8. Japanese manufacturing firms saw a
decline in output for the second month running in
May. Consumer prices rose 3.2% (YoY) in April.
Activity in Australias manufacturing sector
strengthened in May, rising to 49.2, compared with a
read of 44.8 in April. Moreover, Australias economy
grew 3.5% (YoY) in Q1, its fastest pace in nearly two
years. Lastly, the RBA left rates on hold at 2.5%.
SPOTLI GHT
12.0%
14.0%
16.0%
18.0%
Portugal Unemployment Rate
Jun 02 Jun 03 Jun 04 Jun 05 Jun 06
Portugal 6M
0.505% 0.498% 0.503% 0.438% 0.480%
Portugal 5Y
2.635% 2.698% 2.655% 2.557% 2.300%
Portugal 10Y
3.670% 3.664% 3.671% 3.644% 3.513%
Spain 10Y
2.847% 2.851% 2.879% 2.827% 2.651%
France 10Y
1.770% 1.811% 1.841% 1.804% 1.718%
Italy 10Y
2.963% 2.993% 3.014% 2.936% 2.769%
Germany 10Y
1.367% 1.411% 1.437% 1.417% 1.357%
UK 10Y
2.619% 2.652% 2.701% 2.675% 2.660%
Jun 02 Jun 03 Jun 04 Jun 05 Jun 06
Euribor 1M 0.250% 0.248% 0.241% 0.230% -
Euribor 3M 0.309% 0.307% 0.301% 0.292% -
Euribor 6M 0.394% 0.391% 0.386% 0.376% -
Euribor 12M 0.569% 0.567% 0.562% 0.552% -
Eonia 0.226% 0.191% 0.142% 0.104% -
Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Wkly Chg
EUR/USD 1.360 1.362 1.360 1.366 1.364 0.07%
EUR/CHF 1.222 1.222 1.220 1.218 1.219 -0.14%
EUR/GBP 0.812 0.814 0.813 0.813 0.812 -0.18%
EUR/JPY 139.290 139.710 139.660 139.920 139.870 0.80%
EUR/YUAN 8.495 8.519 8.502 8.514 8.528 0.12%
AUD/JPY 94.610 94.950 95.210 95.530 95.630 0.93%
Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Wkly Chg
PSI 20 7,160.61 7,126.15 7,164.89 7,238.05 7,347.36 3.95%
STOXX 50 3,247.80 3,241.04 3,237.93 3,267.05 3,294.28 1.71%
FTSE 100 6,864.10 6,836.30 6,818.63 6,813.49 6,858.21 -0.19%
DAX 9,950.12 9,919.74 9,926.67 9,947.83 9,987.19 0.61%
CAC 40 4,515.89 4,503.69 4,501.00 4,548.73 4,581.12 1.57%
NIKKEI 225 14,935.92 15,034.25 15,067.96 15,079.37 15,077.24 2.51%
HANG SENG - 23,291.04 23,151.71 23,109.66 22,951.00 -0.54%





























Beatriz Fougo
US TREASURY YI ELDS
CURRENCI ES

FEP Finance Club; investing.com
COMMODI TI ES
Page 2/2

U.S. unemployment remained unchanged
Gaining 1.3% on the week, the S&P 500 also hit an all-
time high of 1,949.44. On the economic front, payroll
processing firm ADP said that non-farm employment
rose less than expected to 179K, from 220K in the
preceding month. Besides, non-farm payrolls added
217,000 jobs in May, slightly above the 215,000 that
economists were expecting and initial jobless claims
rose to 312,000, showing this seasonally adjusted
reading an increase of 2.6%. Moreover, the Institute of
Supply Management non-manufacturing purchasing
managers index rose more than expected in the last
quarter to a seasonally adjusted annual rate of 56.3,
from 55.2 in the preceding quarter. Finally, the
unemployment rate remained unchanged at 6.3% and
is 0.1% better than the 6.4% consensus.

Bank of Mexico surprised the market
The Bank of Mexico unexpectedly cut its benchmark
lending rate by half of a percentage point on Friday, to
a record low of 3% to help jump-start a slow
economy. In Brazil, the annual inflation, measured by
the CPI (Consumer Price Index), rose by 6.37%, as the
central bank signals it will keep interest rates on hold.
This increase was more than economists predicted for
May and the fastest rate since June.

Gold rose on ECBs stimulus measures.
Gold prices ended the week on a high amid strong
gains recorded on Thursday, following the European
Central Banks decision to unveil fresh stimulus
measures. Elsewhere in metal sections, copper
dropped 2.52% over the week, as Chinese authorities
continue to investigate whether companies used the
same copper, aluminum and iron ore stocks held in
the port of Qingdao as collateral for multiple loans.
On the energy front, natural gas rose over the week,
inducing concerns that seasonally hot weather, typical
of this time of the season, will spur power demand,
limiting stockpiles gain. Besides, oil futures fell after
investors locked in gains upbeat Chinese and U.S.
manufacturing reports and later sold the commodity
for profits. On the softs front as well, corn futures
dropped 1.50%, as beneficial weather in the U.S.
Midwest aided planting progress. Finally, sugar
dropped amid forecasts pointing to a possible
production deficit in 2014-15, as per FAO report.
SPOTLI GHT
U.S. Unemployment
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5.0%
6.0%
7.0%
8.0%
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` Pedro Santos Joo Fernandes
FEP Finance Club; Investing.com
Pratik Ashok Ana Reis Jorge Rodrigues
FEP Finance Club; Google Finance
Jun 02 Jun 03 Jun 04 Jun 05 Jun 06
US 3M 0.030% 0.038% 0.035% 0.035% 0.035%
US 1Y 0.101% 0.099% 0.099% 0.096% 0.096%
US 10 Y 2.527% 2.599% 2.606% 2.584% 2.597%
US 30 Y 3.368% 3.439% 3.444% 3.436% 3.440%
3.70%
-0.87%
-0.05%
-1.50% Corn -2.25% Sugar
0.52%
1.13%
-2.52%
Crude Oil WTI
Natural Gas
Crude Oil Brent Copper
Silver
Gold
Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Wkly Chg
USD/JPY 102.440 102.560 102.680 102.420 102.470 0.69%
USD/YUAN 6.248 6.255 6.250 6.257 6.252 0.08%
AUD/USD 0.924 0.926 0.927 0.933 0.933 0.26%
GBP/USD 1.674 1.674 1.674 1.681 1.680 0.29%
USD/CHF 0.899 0.897 0.897 0.892 0.893 -0.21%
USD/CAD 1.090 1.092 1.094 1.092 1.093 0.81%
Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Wkly Chg
S&P 500 1,884.66 1,867.72 1,927.88 1,940.46 1,949.44 1.34%
DJIA 16,743.63 16,722.34 16,737.53 16,836.11 16,924.28 1.24%
NQ 100 3,732.96 3,730.07 3,743.59 3,776.95 3,794.57 1.55%
S&P Lac 40 3,664.87 3,684.04 3,651.69 3,679.47 3,768.32 2.72%