S&P 500 futures trade higher pointing to a positive start in the cash market after the ADP employment change came down to -20.263M for April below the expectations of -21.00M. According to the report, large businesses with 500 employees or more cut 8.9 million jobs. Service sector slashed 16 million jobs in April, hotels and restaurants lost 8.6 million, while retail and transportation lost 3.4 million positions.
General Motors Beat Estimates
General Motors (GM) also helps sentiment in premarket after reported Q1 earnings of $294 million. Revenue was down 6.2% to $32.7 billion but above the expectations. General Motors burned $903 million during the quarter. The company is projecting that will restart the U.S. production on May 18.
The news today showed that German factory orders dropped by 16.5% for March, lower than expected. The eurozone retail sales for March were also reported, they came in at -9.2% topping the expectations of -10.5% in March.
The final EMU PMI as a whole ticked up from the flash. The service component came at 12 rather than 11.7, but still far below from 26.4 in March. The composite PMI edged up to 13.6 from 13.5, but also well below the 29.7 reading in March. Germany PMI Composite came in at 17.4 above the expectations of 17.1 in April. The Services PMI came in at 16.2, also above forecasts of 15.9.
EURUSD under Pressure
The euro is under pressure for the second day after falling from $1.09 to about $1.0825 yesterday after the German Constitutional Court ruling. The ruling creates many proBlems for ECB and EMU as It is not as simple as complying with a German court’s demand. If the ECB provides the adjustments that its PSPP is indeed a proportionate response, it also concedes that the German Constitutional Court can overrule the European Court of Justice.