China cuts interest rates for the 3rd time in 6 months

•      China cuts interest rates for the 3rd time in 6 months

•      The People’s Bank of China (PBoC) cut the one year lending rate by 25bps to 5.1% from 5.35% to support the weakening economy.

•      AUD and NZD weakened as the additional stimulus don’t support the real economy but instead benefit the stock market.

•      US nonfarm payrolls just below expectations at 223k in April (est.228k)

•      But the downward revision of the March figure to 85k from 126k and the weaker-than-expected wage growth disappointed investors.

•      However, the decline in the unemployment rate to 5.4% vs 5.5% has kept the scenario for a rate hike in September alive; dollar could regain its lost glamour.

•      Today:

•      Bank of England policy meeting: No change in policy=minimal impact on the market.

•      Norway: CPI for April; Sweden: PES unemployment report April.

•      US: LMCI for April (A broader measure of the employment condition).

•      Eurozone finance ministers meet: Greece on agenda, no agreement expected. 

•      Next Week:

•      Tuesday: Sweden’s CPI and CPIF (the Riksbank favorite inflation measure).

•      Wednesday: Bank of England quarterly inflation report and employment report; preliminary Q1 GDP figures for France, Germany and the Eurozone

•      Friday: US industrial production for April