Archived IMT (2009.05.07)

Stocks fell out of cautiousness ahead of the stress tests coming up shortly as well as Fridays US labor report. Canada will also release its labor report 1.5 hour before the release of the US jobs report. Canadian unemployment expected at 8.3% from 8.0%, while net employment change seen -50K from -60K. The employment component of the April PMI did fall after a rebound in March. UK PPI 8.30 am GMT, exp -3.5% y/y from -0.4% and +0.7% m/m from 2.0%. Such a decline could be weigh on sterling but markets unlikely to move excessively ahead of the US jobs.