What to Watch in the Day Ahead; Thursday, July 3

Wed Jul 2, 2014 2:33pm 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. employers likely added 210,000 workers to their payrolls in June, a sign that the economy is moving ahead at a reasonable clip even in the face of soft consumer spending. If economists forecasts are accurate, June will mark a fifth straight month in which non-farm employment rose by more than 200,000. The jobless rate is seen holding steady at 6.3 percent, while average hourly earnings are seen rising a mild 0.2 percent. (0830/1230) The Institute for Supply Management's report is also expected to show that its services industry gauge in June was unchanged from the previous month at 56.3. (1000/1400) Separately, the Commerce Department's data is expected to show the trade deficit narrowing to $45 billion in May from $47.2 billion in April. (0830/1230) The European Central Bank is scheduled to meet to discuss interest rates, followed by a news conference and after last month's barrage of policy changes, it is unlikely to do much. (0745/1145) Investors are still waiting for details of the new long-term lending program and ECB President Mario Draghi is bound to be bombarded at his news conference with questions about whether he is ready to launch money-printing quantitative easing. (0830/1230) Investors will be watching Statistics Canada's trade balance report, with the trade gap expected to shrink in May after unexpectedly falling into a deficit the month before. Exports have disappointed since the financial crisis, but policymakers are looking for exports to become a driver of growth as the U.S. economy recovers. (0830/1230) HSBC's Purchasing Managers Index for Brazil's services for June is scheduled for release. The indicator will help assess how much of a boost the soccer World Cup has been for restaurants, hotels and communications in Latin America's largest economy. (0900/1300) Mexico's central bank monthly survey of analysts is expected to show whether a surprise 50 basis point cut in interest rates to a record low of 3 percent earlier this month has fanned inflation expectations or raised growth forecasts among economists, who last month predicted 3.85 percent annual inflation and 3.01 percent growth for the year. The tally of monthly remittances sent from Mexicans abroad is also scheduled for release. (Compiled by Sourav Bose in Bangalore; Editing by Kirti Pandey)