Global

Global Economy Ends First Half On A High: PMI. The global economy ended the first half on a high as business activity picked up in June, with new orders pouring in at their fastest rate in over three years, a survey showed on Thursday. JP Morgan's Global All-Industry Output Index, produced with Markit, rose to 55.4 from May's 54.2, holding above the 50 mark that divides growth from contraction for the 21st month running and the highest reading since February 2011. (Reuters)

Asia

Cautious Mood On Japan Jobs Market. Japanese consumers turned more cautious about job security and their spending, a central bank survey showed, in a sign that some people remain sceptical about the prospects for further improvement in the economy. The diffusion index for job security and wages worsened to minus 13 in June from minus 11.4 in March, showing that the number of people who are very worried about their job security a year from now is increasing. The diffusion index subtracts the number of people who are not worried about what will happen with their job from the number who say they are very worried. (Reuters)

China Services Sector Booms In June, Suggest Economy Steadying. Activity in China's services sector expanded at its fastest pace in 15 months in June, a private survey showed on Thursday, reinforcing signs that the broader economy is stabilizing. The services purchasing managers' index (PMI) compiled by HSBC/Markit rebounded to 53.1 in June from 50.7 in May, well above the 50-point level that demarcates expansion in activity from contraction. (Reuters)

USA

U.S. Job Growth Surges, Unemployment Rate Near Six-Year Low. U.S. employment growth jumped in June and the jobless rate closed in on a six-year low, decisive evidence the economy was growing briskly heading into the second half of the year. Nonfarm payrolls increased by 288,000 jobs last month and the unemployment rate fell to 6.1 % from 6.3 % in May, the Labor Department said on Thursday. Data for April and May were revised to show a total of 29,000 more jobs created than previously reported. The jobless rate reached its lowest level since September 2008 despite a swelling of the labor force. Nevertheless, the labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, was steady at 62.8 %, a low struck in December for the first time since 1978. (Reuters)

U.S. Jobless Claims Rise Slightly, Labor Market Improving. The number of Americans filing new claims for unemployment benefits rose marginally last week, but continued to suggest the labor market was steadily improving. Initial claims for state unemployment benefits rose by 2,000 to a seasonally adjusted 315,000 for the week ended June 28, the Labor Department said on Thursday. The prior week's claims were revised to show 1,000 more applications received than previously reported. Economists polled by Reuters had forecast first-time applications for jobless aid rising to 314,000 last week. (Reuters)

Services In U.S. Grow At Second-Fastest Pace In Almost Year. Service providers from construction firms to retailers expanded in June at the second-fastest pace in almost a year, showing more momentum in the U.S. economy. The Institute for Supply Management’s non-manufacturing index was 56 last month after May’s 56.3, which was the highest since August, the Tempe, Arizona-based group said today. The median forecast in a Bloomberg survey of economists called for no change from May. Readings greater than 50 signal expansion. (Bloomberg)

Trade Gap In U.S. Shrinks More Than Forecast On Record Exports. The trade deficit in the U.S. narrowed more than forecast in May on record exports, signaling a pickup in global growth that will boost American manufacturers. The gap shrank by 5.6 %, the biggest drop since November, to $44.4 billion from the prior month’s $47 billion, Commerce Department figures showed today in Washington. The median forecast in a Bloomberg survey of 69 economists called for a contraction to $45 billion. Sales to foreign customers climbed 1 % on growing demand for autos and parts, petroleum products and aircraft engines. (Bloomberg)

Europe

ECB Issues Forward Guidance On Rates. European Central Bank (ECB) president Mario Draghi has said Eurozone interest rates will stay at 0.15% for an "extended period" of time. Mr Draghi was speaking after the ECB left rates on hold, a month after it cut them to help economic growth. In June the bank cut its deposit rate from zero to -0.10% and its benchmark rate from 0.25% to 0.15%. Mr Draghi added rate decisions would be taken every six weeks from January 2015 instead of monthly. It also said it would offer long-term loans to commercial banks at cheap rates. (BBC)

Euro Zone Business Growth Slows As ECB Meets. Euro zone firms expanded at their slowest rate in six months in June while cutting the prices they charge, surveys showed, signalling business conditions remain tricky as monetary authorities prepare to give a policy update. Business activity in France, the euro zone's second-biggest economy, shrank at the fastest rate in four months while in Germany, the largest, the pace of growth slowed. Markit's Composite final June Purchasing Managers' Index (PMI) for the euro zone, based on surveys of thousands of companies across the region and a good indicator of growth, was in line with a preliminary reading of 52.8, down from May's 53.5. The PMI for the euro zone's dominant service industry fell to 52.8 from 53.2, also in line with an earlier flash reading and above the 50 mark that separates growth from contraction. (Reuters)

Euro-Zone Retail Sales Rose In April. Retail sales across the 18 countries that share the euro rose for the fourth straight month in April, and at the fastest year-to-year pace since early 2007. The European Union's statistics agency, Eurostat, released the figures as members of the European Central Bank's governing council gathered in Frankfurt, a meeting that most economists expect to conclude with the announcement of a series of measures designed to boost growth and the inflation rate. Eurostat said the volume of sales rose 0.4% from March, and 2.4% from April 2013. That was the largest year-to-year increase since March 2007, when sales rose 3.0%. (WSJ)

UK Service Sector Growth Remains Strong. The UK service sector continued to grow at a steady pace in June, pointing to a further strengthening of the economy in the first half of 2014. The Markit/CIPS services purchasing managers' index (PMI) registered 57.7, down from May's reading of 58.6 but still well above the measure of 50 which indicates expansion. The survey also said employment in the sector grew at a record pace. The services sector accounts for about three quarters of UK economic growth. (BBC)

Irish Economy Returns To Growth With 2.7% Surge. Ireland’s economy returned to growth in the first quarter as pressure mounts on Prime Minister Enda Kenny to ease austerity after years of spending cuts and tax increases. Gross domestic product rose 2.7 %, the most since the end of 2012, the Central Statistics Office said in Dublin today. The decline in the previous quarter was revised to 0.1 % from 2.3 % initially reported. From a year earlier, the economy grew 4.1 %. Net trade boosted growth in the quarter, with exports rising 1.8 %, outpacing a 0.8 % increase in imports. Government spending dropped 2.1 %. (Bloomberg)

Currencies

U.S. Dollar Hits Three-Week High Versus Yen On Jobs. The U.S. dollar strengthened against its rivals Thursday after a jobs report surpassed expectations, but stopped short of a sharp move higher as traders said the data weren’t strong enough to shift monetary policy expectations. The greenback bought 102.21 Japanese yen on Thursday, the most in over three weeks on a closing basis. That compares with ¥101.79 in the previous session, according to FactSet. The ICE U.S. dollar index, which measures the strength of the American currency against a basket of rivals, edged up to 80.222, versus 79.956 on Wednesday. The euro sank to $1.3604, from $1.3666 late Wednesday. It briefly dipped below $1.36. The Australian dollar dropped to 93.57 U.S. cents, from 94.36 cents on Wednesday. (Market Watch)

Commodities

Oil Futures Fall As Libya Says Oil Crisis Is Over. Crude oil futures prices on both sides of the Atlantic fell on Thursday as supply fears began to ease after Libya declared an end to an oil crisis that has slashed exports from the OPEC member. Brent reached a session low of $110.53 before paring losses ahead of the close, more than $5 off a 9-month high of $115.71 reached on June 19. U.S. oil fell 42 cents to settle at $104.06 a barrel, after dropping as low as $103.67 earlier in the session, also hitting a three-week trough. (Reuters)

Gold Slips After Upbeat U.S. Nonfarm Payrolls. Gold slipped on Thursday after U.S. nonfarm payrolls rose more than expected in June, fueling expectations U.S. interest rates could rise earlier than expected. Spot gold was down 0.6 % to $1,319.15 an ounce by 2:04 PM EDT (1404 GMT), having earlier dropped as much as 1.3 % to a one-week low of $1,309.64. Among other metals, palladium was up 0.4 % at $855.60 an ounce. Platinum was down 0.5 % at $1,494.25 an ounce, hovering near a 10-month high of $1,517.50 reached on Wednesday, while silver ended unchanged at $21.09 an ounce. (Reuters)