US equity futures lower ahead of May payrolls

By John Balassi

NEW YORK, June 5 (IFR) - Summary of overnight events and Friday's main headlines: Dow Futures: -35, S&P Futures: -4.50, Nasdaq Futures: -8.25 CDX IG23: 0.1875bp wider, CDX HY23: 0.0625 point lower 10-yr UST yield: 2.338 +3.1bp; 30-yr UST yield: 3.067%, +3.4bp EUR/USD: 1.1227, -0.09%

HEADLINES Futures lower ahead of May jobs data U.S. stock index futures were lower on Friday ahead of the May payrolls report, a key data point that could feed into the U.S. Federal Reserve's decision on when to increase rates. U.S. jobs market seen firming despite lackluster growth U.S. job growth was likely solid in May and wages probably picked up a bit, suggesting sufficient momentum in the economy for the Federal Reserve to raise interest rates later this year. Nonfarm payrolls likely increased by 225,000 positions last month after rising by 223,000 in April, according to a Reuters survey of economists. Greece postpones IMF payment; snap elections possible Greece delayed repayment of an IMF loan on Friday and a deputy minister said the government might call snap elections if its creditors do not soften their terms, an option that an opinion poll showed four of ten Greeks support. OPEC agrees to keep pumping as global oil glut fears persists Oil group OPEC agreed to stick by its policy of unconstrained output for another six months on Friday, setting aside warnings of a second lurch lower in prices as some members such as Iran look to ramp up exports. Global business growth eased in May but employment picked up: PMI Global business growth stuttered in May but firms recruited staff at the fastest rate for over seven years, suggesting they were optimistic about the future, a survey showed. JPMorgan's Global All-Industry Output Index, produced with Markit (NasdaqGS: MRKT - news) , fell to 53.6 in May from April's 54.2. It has been above the 50 mark that divides growth from contraction since October 2012. GLOBAL MACRO * Market opens risk off after Greece announces that the IMF will receive a EUR1.6bn balloon payment on June 30 * EU Dijsselbloem still sees large differences between EU and Greece - Rts * Brent slides to $57.5 as OPEC keeps tap open * German April Industrial Orders 1.4% (exp 0.5%, prev 1.1%) * France April Trade Balance EUR -3bn (prev EUR -4.4bn) * France April Imports EUR41.2bn (prev EUR42.1bn) and Exports EUR 38.2bn (prev 37.7bn) * Spain April Industrial Output 1.8% (exp 1.5%, prev 3.2%) US DATA * 08:30 Nonfarm Payrolls (May) (mkt 225k, prev +223k) * 08:30 Private Payrolls (May) (mkt 220k, prev +213k) * 08:30 Manufacturing Payrolls (May) (mkt 5k, prev +1k) * 08:30 Unemployment Rate (May) (mkt 5.4%, prev 5.4%) * 08:30 Average Hourly Earnings (May) (mkt +0.2% m/m, prev +0.1% m/m) * 08:30 Average Workweek (May) (mkt 34.5 hrs, prev 34.5 hrs) * 15:00 Consumer Credit (Apr) (mkt $16.70 bn, prev $20.52 bn) EVENTS * 12:30 FRB New York's Dudley (voter, dove) on the economy; Minneapolis, MN * G-7 Finance Ministers meet; Dresden, Germany USD HIGH-GRADE PIPELINE Reynolds American (NYSE: RAI - news) , Baa2/BBB-, mandated joint leads Citigroup (NYSE: C - news) and J.P. Morgan (Other OTC: MGHL - news) to arrange fixed income investor calls today that will continue on Monday, June 8th. Reynolds American secured an up to $9bn bridge loan from Citigroup and J.P. Morgan for its Lorillard Tobacco merger agreement. Pershing Square Holdings, Ltd., has mandated Deutsche Bank (Xetra: 514000 - news) and UBS Investment Bank as Joint Bookrunners to arrange a series of fixed-income investor meetings and calls in Europe, North America and Asia, with Dexion Capital, RBC (Other OTC: RBCI - news) , BTG Pactual and Soc-Gen as Co-Managers. IPALCO Enterprises, Baa3/BB+, asked J.P. Morgan and Morgan Stanley to arrange fixed income investor conference calls. Embraer SA, Baa3/BBB, has mandated Citigroup and Morgan Stanley (Xetra: 885836 - news) to schedule fixed income investor meetings in the U.S. and Europe in preparation for a dollar-denominated offering by Embraer Netherlands Finance B.V. Nonghyup Bank, rated A1/A, will start fixed-income meetings in Asia and Europe for a US dollar bond offering on June 1. Citigroup, Commerzbank (Xetra: CBK100 - news) , HSBC and Societe Generale (Paris: FR0000130809 - news) were mandated. Janus Capital Group Inc., Baa3/BBB-, asked Citigroup, J.P. Morgan and Wells Fargo (Swiss: WFC.SW - news) to arrange fixed income investor meetings. Korea Hydro & Nuclear Power Co. Ltd., Aa3/A+, mandated BNP (Paris: FR0000131104 - news) Paribas, Citigroup, Goldman Sachs (NYSE: GS-PB - news) and HSBC to arrange fixed income investor meetings in the U.S. Kite Realty, Baa3/BBB-, mandated Citigroup, J.P. Morgan and Wells Fargo to arrange investor meetings Halliburton Co, A2/A, filed an S-3ASR automatic debt securities shelf registration. Proceeds were flagged for general corporate purposes including but not limited to repayment or refinancing of debt, financing of acquisitions, working capital, CAPEX and repurchases and redemptions of securities.

(Reporting by John Balassi)