Unchanged from revised March reading

Number of unemployed  rose by 110,000 from 133,000 in March, with the total in April of 17.4m up almost 1.8m  from a  year earlier

• Earthquake prelim magnitude of 5.2
• No tsunami warning issued after quake

Benchmark  10 year US treasury yield down at 1.5374% from the 1.5713% I jotted down first thing.

USD/JPY down at 78.30 from early 78.45.

Talk of buy orders clustered 78.00/20 ahead of touted 78.00 barrier option interest.

-UK Markit/CIPS May Manufacturing Index 45.9 Vs 50.2 In April

LONDON (MNI) – The UK manufacturing sector contracted sharply in
May, posting its worst peformance since the same month three years ago.

The headline Markit/Chartered Institute of Purchasing and Supply
index from Reuters fell to 45.9 in May, down from a revised 50.2 in
April, and well below both the 50 breakeven level and analysts’ median
forecast for a 49.5 outturn. The headline index’s 4.3-point fall on the
month was the second-steepest fall in the survey’s 20-year history,
Markit said.

“The UK manufacturing sector took a sudden sharp turn for the worse
in May. The PMI sank to a three-year low as firms cut production in
response to levels of new work nosediving,” Rob Dobson, senior economist
at Markit, said.

Dobson added the drop was not due solely to weak euro area demand
but also to the growing weakness of the UK domestic market.

The detailed data showed new orders fell at their fastest pace
since March 2009, with manufacturers cutting back output, employment,
purchasing and inventories.

With June economic activity set to be impacted by the extra holiday
for the Queen’s Jubilee, the data show manufacturing struggling to make
headway in the second quarter.

Policymakers have long hoped improved manufacturing activity would
help lead the way in rebalancing the UK economy, but the sector is now
contracting rather than expanding.

–London newsroom: +44 207 862 7491; email:drobinson@marketnews.com

[TOPICS: MABDS$,M$B$$$,MT$$$$]

Based on early counts.

Well below Reuters forecast of  49.8 , the lowest since May 2009  and  April’s revised  49.0.

Cable’s getting another kicking on the reading, taking out the 1.5300 barrier to fresh lows of  1.5286

From 536 I jotted down first thing.

• Financial market turbulance weighs on euro area real economy (you betcha)

Hearing next downside target is another barrier at 1.5300 ahead of technical support down around 1.5275/85.

EUR/GBP’s not helping matters with a push up to 0.8060 as cable hits session lows of  1.5312

Remained flat adjusted for May vacation VDIK says.

Things must be bad if the Germans struggling to sell cars

A record high since Jan 2004, above Reuters median of 9.9% and above March’s reading of 10.1%

Lowest since June 2009, fractionally up from flash reading of 45.0,  and down from April’s 45.9

May Final Mfg New orders index 42.6 from flash 42.5 and  down from April’s 43.5

Hasn’t that been confirmed yet. Give me a break.

• EU needs growth, structural reforms, balanced budgets (and a small miracle or two wouldn’t go a miss)
• Spain, Italy have taken decisive action
• EU, euro area have tough decisions
• Euro area faces deterioration or gradual strengthening
• EU needs more public, private sector investments
• Countries running surpluses must boost domestic demand
• Germany should have above-average wage increases

 from final 46.2 in April and  slightly above  flash reading of 45.0

Still showing  contraction at the fastest  rate for 3 years , although slightly slower than suggested

Lowest in 3 years . From flash 44.4 and April’s final 46.9

Slightly above Reuters forecast of 43.5 and last months reading of 43.8

And a day’s low of 1.5341 as EUR/GBP grinds higher to 0.8044.

Talk now doing the rounds of a barrier placed at 1.5330, so expect some bids ahead of it.

GBP/USD’s at 1.5346

Down from 49.7 in April and weaker than Reuter’s median forecast of 48.5.

– See Separate Table For Details Of Individual Forecasts

TOKYO (MNI) – The following are the median forecasts for Japanese
economic data due in the coming week provided by economists surveyed by
MNI.

The current account surplus is forecast at Y464.1 billion, up 9.5%
on year, which would be the first year-on-year rise in 14 months, thanks
to a steady gain in income surplus.

The trade balance is forecast to show a deficit of Y451.8 billion,
due to continued high costs of energy imports. after marking surpluses
in both March and February.

The income account, the largest component of the current account,
is expected to show a surplus of Y1.360 trillion, up 4.4% on year, which
would be the 13th straight year-on-year gain.

Friday, June 8, 0850 JST (2350 GMT Thursday): The Ministry of
Finance releases the April current account balance. Forecasts: a current
account surplus of Y464.1 billion, up 9.5% on year, the first rise in 14
months; a trade deficit worth Y451.8 billion, compared with a deficit of
Y412.0 billion a year before; an income account surplus of Y1.360
trillion, up 4.4% y/y.

skodama@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4838 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$]

Ughh

Down from 43.5 in April and lowest level since May 2009.

EUR/USD slips to 1.2335.