What to Watch in The Day Ahead; Friday, June 6

Thu Jun 5, 2014 2:27pm EDT
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(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT) U.S. non-farm employment likely rose by a respectable 218,000 in May after climbing in April at the fastest pace in more than two years. The monthly jobs data should paint a picture of an economy that continues to gain traction after its winter swoon. The jobless rate is expected to rise a tenth of a percentage point to 6.4 percent; but economists expect the increase to be driven by an increase in the number of Americans in the workforce, which would be a welcome sign after May's sharp drop in labor force participation. (0830/1230) Statistics Canada's employment figures for May are expected to show 25,000 jobs were created in the month after an estimated 28,900 jobs vanished in April. The unemployment rate likely remained at 6.9 percent. Jobs growth has been largely flat since last August, underperforming the United States. (0830/1230) Cisco rival Arista Networks' IPO is expected to raise as much as $210 million by offering 5.25 million shares at $36-$40 each. Arista builds switches that handle traffic at large internet data centers for companies including Facebook, Yahoo, Comcast and Citigroup. At the top end of its expected price range, Arista would be valued at about $2.5 billion. Brazil's annual inflation rate probably hovered around the top-end of the official target at 6.5 percent in May. Stubborn inflation is a major theme in Brazil's upcoming presidential election, complicating President Dilma Rousseff's campaign for a second term. (0800/1200) Chile also releases May inflation data which will be closely watched after it came in much higher than expected in recent months. (0800/1200) Separately, Mexico's central bank is scheduled to release its monetary policy statement. The bank is expected to hold its benchmark interest rate at a record low of 3.5 percent to support the rocky economic recovery from last year's slowdown. (1000/1400) (Compiled By Sourav Bose in Bangalore.)