Central banks stole the show but stocks barely budged. The S&P 500 closed down 0.47 per cent at 1,367.58. The Nasdaq closed flat. Calm before the payrolls numbers (Reuters). The ECB and the Chinese central bank both cut interest rates, in the ECB's case to record lows. The Bank of England also raised its target for quantitative easing of the UK economy (Financial Times). The People's Bank of China reduced one-year lending rates by 31bps, its second move on rates within a month. The decision indicated the PBOC has grown more concerned about a banking slowdown (Wall Street Journal). The ECB cut its benchmark interest to 0.75 per cent and its deposit rate to zero per cent. "We are now seeing a weakening of growth in the whole of the euro area, including countries that had not experienced it before," ECB President Mario Draghi told a press conference (Financial Times). ADP payroll figures indicated that the US private sector added 176,000 jobs in June. Weekly jobless claims also came out better than expected, adding some hopes that Friday's nonfarm payrolls for June will show acceleration versus previous months (Financial Times). But the ISM services sector survey for June suggested activity is at its slowest since January 2010. Phil Falcone plans to deflect blame onto lawyers and advisers in his defence against SEC allegations. The SEC has alleged Falcone and Harbinger Capital misled investors over a personal loan. Falcone is likely to argue that the loan, to pay his taxes, was the best solution for the fund and investors by helping to stop a tax lien on the fund's assets, and that the loan was taken on outside advice (Wall Street Journal). Nonfarm payrolls! Consensus for June is a 90k increase, with 100k in private payrolls. Unemployment rate consensus is 8.2 per cent. Goldman upgraded their payroll forecast to 125k from 75k... Krugman: "So what did the ECB do today? The minimal amount. What happens if benchmarks (*cough* Libor) are illiquid? Matt Levine tries to quantify Libor damage. Kid Dynamite: "I'm not folding quad 8′s here." A Chinese mountain went to the stock market... This entry was posted by Joseph Cotterill on Thursday, July 5th, 2012 at 22:18 and is filed under Uncategorised.