Equity Wrap

Equity indices benefited from optimism carried over from the European and Asian sessions after better manufacturing reports raised hopes that the global recession is easing. The positive sentiment was given a further boost following an in-line reading for the June ISM manufacturing data. However, the upward momentum was not sustained amid lower volumes, as traders turned their focus to today's NFP report. Further to that, downbeat comments out of GM related to creditor payments, as well as news that California's governor has declared a state of fiscal emergency, put further pressure on stocks later on in the session. Finally, at the closing bell DJI closed up 0.68% at 8504.06, S&P 500 closed up 0.44% at 923.32 and NASDAQ100 closed up 0.28% at 1481.34.

Fixed Income Wrap

Treasuries were lower during the early hours of trade after investors turned their attention to looming supply in the form of TIPS, 3,10 and 30y notes refunding announcement tomorrow. However, T-notes moved off lows after a lower ADP reading raised concerns the upcoming NFP report may top analyst estimates. T-notes then accelerated their ascent after the Fed bought USD 2.99bln of Treasuries in its latest coupon pass with an offer/cover ratio inline with the previous. Finally, the closing stages saw prices grind higher and at the pit close to finish flat at 116.085.