Stimulus Expectations following NON-FARM Payrolls

<p>- After Thursdays risk rally following Mario Draghi’s statement indicating that the ECB will do all it can to save the euro and outlined details […]</p>

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- After Thursdays risk rally following Mario Draghi’s statement indicating that the ECB will do all it can to save the euro and outlined details of the sterilized bond purchasing programme with all eyes turned to the August NFP payrolls. A week earlier ben Bernanke reiterated that the US labor market would be a key factor in determining any monetary policy decision. Basically a weaker NFP figure would increase market expectation of US stimulus. The forecast for AUGUST was +127,000, however, the actual figure was lower at 96,000. We now have to wait until Thursday to hear what Ben Bernanke will have to say at the FED’s press conference.

- Looking at Europe this morning the FTSE is down 13 points at 5781 and the DAX is FLAT at 7214

- UK mining stocks are leading the way today showing gains of 1.1%

- The Glencore Xstrata deal is yet to be confirmed, however Glencore’s revised offer seems to have increased expectation that the deal should be completed soon.

- Marks and Spencer opened up 4% after the retailer announced a management change in their womenswear department.

- Not much data to look out for today, key events this week will be the Dutch elections on Wednesday and a court verdict on the legality of the European Stability mechanism. Thursday will focus on the FOMC rate decision and Bernankes press conference.

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