Asia

Japan’s Economy Accelerated In First Quarter. Japan’s economy grew at the fastest pace since 2011 in the first quarter as companies stepped up investment and consumers splurged before the first sales-tax rise in 17 years last month. Gross domestic product grew an annualized 5.9 % from the previous quarter, the Cabinet Office said today in Tokyo, more than a 4.2 % median forecast in a Bloomberg News survey of 32 economists. Consumer spending rose at the fastest pace since the quarter before the 1997 tax increase, while capital spending jumped the most since 2011. (Bloomberg)

USA

Price Increases Show U.S. Picking Up As Firings Drop. The cost of living rose in April and fewer Americans filed claims for jobless benefits last week, showing the world’s largest economy is making progress toward the Federal Reserve’s unemployment and inflation goals. The consumer-price index increased 0.3 % last month, the biggest gain since June, Labor Department data showed today in Washington. The number of applications for unemployment insurance payments dropped by 24,000 to 297,000 in the week ended May 10, less than any economist projected in a Bloomberg survey and the least since May 2007, according to other figures. (Bloomberg)

US Industrial Production Falls Sharply In April, Tempers Optimism. U.S. industrial output fell at its fastest rate in more than 1-1/2 years in April as factory production slumped, tempering hopes for a big jump in economic growth after a winter slowdown. Production at the nation's mines, factories and utilities slipped 0.6 % last month, the largest decline since August 2012, after an upwardly revised 0.9 % gain in March, the Federal Reserve said on Thursday. Economists had expected output to hold steady. Manufacturing production, which had risen solidly in February and March, dropped 0.4 %. With output slipping, U.S. industry operated at only 78.6 % of its capacity, down from 79.3 % in March. (Reuters)

Europe

Eurozone Economic Growth Loses Momentum. Eurozone economic growth lost momentum in the first three months of 2014, official figures show, with the growth rate unchanged from the previous quarter at 0.2%. That was weaker than many economists had expected. German growth picked up pace, with the economy expanding by 0.8%. But France and Italy disappointed. The French economy failed to grow, while Italy's contracted by 0.1%, having only just emerged from recession last year. Spain's economy grew by 0.4% in the first quarter. (BBC)

Russian GDP Growth Slows As Investment Sags On Sanctions. Russia’s first-quarter economic growth slowed to the weakest in a year as the standoff against the U.S. and its allies over Ukraine shrivels up investment. Gross domestic product advanced 0.9 % in January-March from a year earlier after a 2 % gain in the previous quarter, the Moscow-based Federal Statistics Service said in an e-mailed statement, providing its first estimate of first-quarter GDP. That was above the 0.7 % median estimate of 19 economists in a Bloomberg survey. The Economy Ministry had projected that output expanded  0.8 %. (Bloomberg)

Currencies

Dollar Dragged Lower By Falling Treasury Yields. The dollar reversed course on Thursday, falling against the Japanese yen as U.S. Treasury yields slumped. The dollar fell to ¥101.57 from ¥101.86 late Wednesday. The ICE dollar index, a gauge of the greenback’s strength against six currencies, fell to 80.032 from 80.060 in the prior session. The euro traded at $1.3712 versus $1.3715 late Wednesday. Meanwhile, the British pound rose to $1.6791 from $1.6769 late Wednesday. The Australian dollar fell to 93.57 U.S. cents from 93.79 U.S. cents. (Market Watch)

Commodities

Brent Rises At June Contract Expiration, U.S. Crude Falls. Front-month Brent crude futures rose and went off the board on Thursday at the highest settlement since March, while U.S. futures fell, snapping a string of three straight higher settlements. Expiring Brent crude for June rose 25 cents to settle at $110.44 a barrel, its highest settlement since settling at $111.20 on March 3. Brent July crude fell 22 cents to settle at $109.09 a barrel. U.S. June crude fell 87 cents to settle at $101.50 a barrel after Wednesday's settlement at $102.37, its highest finish since April 21. (Reuters)

Gold Drops 0.9 Pct On Technicals, Bright US Economic Data. Gold fell almost 1 % on Thursday on technical selling after prices broke below the important $1,300-an-ounce chart level, while U.S. jobless claims data and consumer prices pointed to a firming economy that reduced gold's risk premium. Spot gold fell 0.9 % to $1,293.0 an ounce by 2:08 p.m. EDT (1808 GMT). Spot silver fell 1.6 % to $19.4