From: Ike Groff Sent: Fri 5/3/2013 9:51:39 AM Subject: Early Tour 5.3.13 Good Morning ... European Markets mixed... ASX -0.01%, KOSPI +0.43%, TWSE +0.08%, SHCOMP +1.45%, HSI +0.09% EUR 1.3127 (+0.47%) JPY 98.12 (-0.19%) EUR/JPY 128.81 (+0.66%) Spain 10yr 3.97% Italy 10yr 3.74% US 10yr 1.64% Futures: Dow -11, Nasdaq -1, S&P -2 DXY $81.99 (-23c) Crude $93.80 (-19c) Gold $1476.20 (+$8.60) Copper +2.77% Silver +0.97% Asian markets mixed in a very quiet trading session with Japan off and news flow on the slow side. China received most of the attention as chatter of a rate cut over the weekend helped boost mainland indices. Financials and property names were stronger as land sales in April up 200%YoY in first tier cities. Brokers were also higher after PBOC and CSRC said they intended to approve RMB200 billion worth of additional ROFII quota by year end. Current ROFII quota stands at RMB70 billion. South Korea ended at the highs amid speculation of a possible BoK cut next week. India is trading lower after the RBI cut interest rates for a third straight meeting to revive growth. Japan will remain closed on Monday and reopen on Tuesday. European markets also mixed this morning. Spread tightening in the periphery continuing with Spain 10yr falling below 4% for first time since 2010 and Italy bonds rallying with 2yr yield below 1% for first time on record. ECB left the door open for further measures to help the economy yesterday and while Draghi hinted on negative deposit rates ECB Governing Council member Nowotny out this morning saying comments were "over interpreted" and no plans to cut below zero which has the Euro rebounding. European Commission however, released a report that cut GDP forecasts for the region and expects and "increasing labor-market mismatch" keeping unemployment rates higher. Commodities rallying with metals leading the way (Copper +2.77%) and SPAs -2 handles = 1590.50 last ahead of the US Labor report out at 8:30am. "