The euro exchange rate fell sharply against the dollar, which has been associated with Draghi comments. Trichet said that the authorities are ready to act again, after the Central Bank lowered the rate to 0.50%.

Draghi's comments, made in Rome include recommendations to the government, support tax cuts and a more equitable distribution of wealth in the euro area in order to increase economic activity. However, fiscal consolidation is still mandatory, especially for countries with the highest levels of debt.

We also add that in early trading little impact on the couple gave a report on retail sales, which showed that in March retail sales in the eurozone fell by 2.4% per year versus -1.7% previously and forecast of -2.2%. Note that a monthly basis, this figure fell to 0.1% from 0.2% in February, which was in line with expectations.

No less important was the report that showed that in April, the German services PMI fell to 49.6 against 50.9 the previous month and the forecast of 49.2, Italian PMI exceeded the forecast of 45.8 and up from 45.5 to 47.0; Spanish indicator fell from 45.3 to 44.4 (forecast 45.7 ). PMI Services eurozone rose to 47.0 from 46.4, exceeding the forecast of 46.6, while the composite PMI improved to 46.9 vs. 46.5.

The cost of the Canadian dollar was higher against the U.S. dollar after a report from the Ivey showed that the index of business activity fell markedly in the last month, beating forecasts with experts. According to the report, the seasonally adjusted value of the index fell in April to a level of 52.2, up from 61.6 in March. Note that according to estimates, the figure was reduced to the level of 58.3. Recall that, as the value of this index is above 50, indicating expansion in consumer activity. The report also stated that the employment sub-index in April was 55.1, indicating that employment was higher than in the previous month. Meanwhile, it became known that the sub-index stocks amounted to 52.7, a sub-price index stood at 58.7, while the sub-index reached 49.5 deliveries. Note that not seasonally adjusted business activity index was 50.9 in April

The Australian dollar fell against the U.S. dollar after the data, which were released today by the Australian Bureau of Statistics showed that retail sales in Australia fell in the month of March, showing at the same time the first decline in three months, which was mainly due to the decline in consumer spending on household goods as well as clothing, shoes, jewelry, and accessories. According to the report, the seasonally adjusted retail sales fell by 0.4 percent, after rising 1.3 percent in each of the past two months. Economists had expected a rise of 0.1 percent. Note that, according to most experts predicted average sales should grow by 0.2 percent.

The data also showed that the retail sale of household goods in March decreased by 1.5 percent, while spending on clothing, footwear and personal accessories fell 4.2 percent.

Sales at department stores fell 0.1 percent, while growth in food sales slowed to 0.8 percent.

Meanwhile, the Australian Financial Review today reported that the Treasury of Australia lowered the GDP growth forecast for the current and next fiscal year. As it became known, GDP growth forecast lowered by 0.25% to 2.75% in the current fiscal year, which ends June 30, and in the 2013-2014 fiscal year.

European stocks were little changed near a five-year high as services and manufacturing output shrank for a 15th month while European Central Bank President Mario Draghi said policy makers are ready to cut interest rates if needed.

The Stoxx Europe 600 Index slipped less than 0.1 percent to 300.97 at the close of trading, having earlier fallen 0.2 percent. Volume was 67 percent less than the 30-day average as markets in the U.K., Ireland and Greece were closed for holidays.

Euro-area services and factory output shrank for a 15th straight month in April. A composite index based on a survey of purchasing managers in both industries rose to 46.9 from 46.5 in March, London-based Markit Economics said today in a final reading. Figures below 50 signal a contraction.

Retail sales in the region fell 0.1 percent in March after a revised 0.2 percent drop in February, the European Union's statistics office in Luxembourg said in a separate report.

Stocks pared losses as Draghi said ECB policy makers are ready to cut interest rates again if needed after reducing them to a record low last week.

"We will be looking at all the data that arrives from the euro-area economy in the coming weeks and if necessary, we are ready to act again," Draghi said in a speech in Rome today. "Monetary policy will remain accommodative."

National benchmark indexes climbed in eight of the 15 western European markets open today.

FTSE 100 6,521.46 +60.75 +0.94% CAC 40 3,907.04 -5.91 -0.15% DAX 8,112.08 -10.21 -0.13%

Air France-KLM Group fell 4.3 percent to 7.31 euros for the biggest decline in the Stoxx 600. Europe's largest airline sank 4.5 percent on May 3 after reporting a loss.

Rheinmetall AG, the maker of armored military vehicles, slipped 1.5 percent to 37 euros in Frankfurt after Bankhaus Metzler downgraded the shares to sell from buy.

Linde rose 2.8 percent to 146.75 euros, the largest gain since Sept. 6. Operating profit climbed 13 percent to 953 million euros ($1.3 billion) in the first quarter as recently- acquired Lincare Holdings Inc. doubled sales of gases in North America, the German company said. That beat the 935 million-euro average prediction in survey of analysts.

Celesio jumped 7.1 percent to 16.33 euros, the biggest advance since August 2011. Haniel, the Duisburg, Germany-based investment company, isn't selling part of its 50 percent holding in the German drug wholesaler, spokesman Dietmar Borchert said today. Platow Brief had earlier reported a possible sale to CVS Caremark Corp.

Oil prices fell, retreating with the maximum value for the last month at $ 105 per barrel, as fresh signs of economic weakness were opposed to increasing concerns in the Middle East after the Israeli air strikes on Syria.

Note that the dynamics of European data also influenced by the PMI, which suggested that the Eurozone is on the way to an even greater decline in the current quarter. In China - the second largest consumer of oil, the survey showed that the growth of service sector activity in April was the weakest since August 2011.

We also add that prices rose earlier today, as Israeli air strikes around Damascus refocused attention on the risks associated with the supply of the Middle East, which is the source of about a third of the world's oil reserves. Note that, according to data of Saudi oil supply for domestic and foreign markets in April amounted to about 9.2 million barrels a day, compared with 9.15 million bpd in March.

Add that today's drop came after the cost of the June contract on crude oil rebounded on Friday by 1.7%, increasing the weekly increase of 2.8%. Recall that the Labor Department reported Friday that the economy added 165,000 jobs in April, which was well above forecasts of many experts.

The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 95.64 dollars per barrel, the lowest intraday level since Dec. 19.

June futures price for North Sea Brent crude oil mixture fell $ 0.05 to $ 105.27 a barrel on the London exchange ICE Futures Europe.

Gold prices held near 2-week high, showing a slight increase, which tempts some buyers back into the market after the second week of growth. Many experts point out that a significant decline, which was recorded last month is likely to be considered complete at this time.

We add that the precious metal rebounded quickly after Friday's decline, which was triggered by the publication of data on employment in the United States, the number of which rose more than expected. The report eased fears about the U.S. economic recovery and reduced the conversations that further monetary easing may be necessary.

According to the vice-president of Saxo Bank Ole Hansen, "Technically we are in a good upward channel since mid-April, but any increase in the dollar may simply push gold to the downside. He also added that the outflow of capital from ingots supported exchange-traded products, which reached record levels in recent months, has also slowed. Note that the stocks in the SPDR Gold Trust fell on Friday by 3.6 tons, against a fall of 6.6 tonnes on Thursday. All these data are signs that the market could potentially preparing for growth to the level of $ 1525, especially given the rapid recovery.

Dealers noted that the increase in demand from China - the second-largest consumer of gold, contributed to an increase in premiums above $ 10 per ounce, making gold cheaper for overseas markets.

The cost of the June gold futures on COMEX today rose to 1468.40 dollars an ounce.

EUR/USD $1.2935, $1.2950, $1.3100, $1.3195, $1.3200

USD/JPY Y98.00, Y98.50, Y98.80

AUD/USD $1.0200, $1.0250, $1.0330, $1.0350

EUR/GBP stg0.8500

EUR/CHF Chf1.2175, Chf1.2250

NZD/USD Nz$0.8500

U.S. stock futures were little changed.

Shares of Intel Corp. (INTC) rose 1% after the world's largest chipmaker offered to buy Finland's Stonesoft Oyj for $389 million.Hang Seng 22,915.09 +225.13 +0.99%

Global Stocks:

Shanghai Composite 2,231.17 +25.67 +1.16%

CAC 3,906.59 -6.36 -0.16%

DAX 8,122.58 +0.29 0.00%

Crude oil $95.02 за баррель (-0.62%).

Gold $1473.10 +0.35%

Upgrades:

RBC Capital Mkts upgrades Intel (INTC) to Outperform from Sector Perform and raises their tgt to $29 from $24.

JP Morgan upgrades UnitedHealth (UNH) from Neutral to Overweight

Downgrades:

Other:

Walt Disney (DIS) reiterated at Hold at Wunderlich, target raised from $58 to $63

EUR/USD

Offers $1.3200, $1.3155/60, $1.3150

Bids $1.3080, $1.3050, $1.2980/77

GBP/USD

Offers $1.5700, $1.5650, $1.5630, $1.5600

Bids $1.5550, $1.5520/00, $1.5475/65, $1.5450

AUD/USD

Offers $1.0390/00, $1.0380, $1.0345/50, $1.0330, $1.0290/00

Bids $1.0220, $1.0200, $1.0185/80, $1.0155/50, $1.0120/15, $1.0100

USD/JPY

Offers Y100.00, Y99.55/60, Y99.50

Bids Y99.10/00, Y98.50, Y98.25/20, Y98.00, Y97.80/60

EUR/JPY

Offers Y132.00, Y131.50, Y131.00, Y130.50

Bids Y129.55/50, Y129.20, Y129.00, Y128.80/70, Y128.50

EUR/GBP

Offers stg0.8500/10, stg0.8480/85, stg0.8450

Bids stg0.8370/65, stg0.8350

EUR/USD $1.2935, $1.2950, $1.3100, $1.3195, $1.3200

USD/JPY Y98.00, Y98.50, Y98.80

AUD/USD $1.0200, $1.0250, $1.0330, $1.0350

EUR/GBP stg0.8500

EUR/CHF Chf1.2175, Chf1.2250

Asian stocks rose, led by mining companies, after faster-than-forecast U.S. employment growth bolstered optimism in the world's largest economy, pushing a regional equities gauge toward a ten-week high.

Nikkei 225 Closed

Hang Seng 22,917.22 +227.26 +1.00%

S&P/ASX 200 5,156.2 +26.70 +0.52%

Shanghai Composite 2,231.42 +25.92 +1.18%

BHP Billiton Ltd., the world's biggest mining company, advanced 2.8 percent in Sydney.

Malayan Banking Bhd., the company with the second-largest weighting on the FTSE Bursa Malaysia KLCI Index, briefly advanced to a record high after Prime Minister Najib Razak won a clear majority in a general election, giving him a mandate to continue his economic reforms.

Cosco Corp. Singapore Ltd., the shipbuilding unit of China's biggest shipping company, lost 5.2 percent as profit plunged 65 percent.

01:30 Australia Retail sales (MoM) March +1.3% +0.2% -0.4%

01:30 Australia Retail Sales Y/Y March +4.6%

01:30 Australia ANZ Job Advertisements (MoM) April -1.5% -1.3%

01:45 China HSBC Services PMI April 54.3 51.1

The yen held a loss against the dollar after its biggest decline in two weeks on signs the U.S. recovery is gathering pace. The yen depreciated beyond 99 per dollar on May 3 for the first time in a week after a U.S. Labor Department report showed employment picked up more than forecast last month and the jobless rate declined to 7.5 percent. Payrolls expanded by 165,000 workers last month following a revised 138,000 increase in March that was larger than first estimated. Initial jobless claims probably rose in the seven days ended May 4 from a more than five-year low of 324,000 the week before. The median estimate of economists surveyed by Bloomberg News ahead of the May 9 report is for claims of 335,000.

Australia's currency slid against all 16 of its most-traded peers after a report showed retail sales unexpectedly shrank, a day before the central bank decides on interest rates. In Australia, retail sales unexpectedly fell 0.4 percent in March after gaining 1.3 percent the previous month, a government report showed today. Economists surveyed by Bloomberg predicted a gain of 0.1 percent. There's a 51 percent chance that the RBA will lower its benchmark 3 percent rate when it meets tomorrow, Bloomberg calculations based on overnight-index swap rates indicate.

Japanese markets are closed today for a holiday.

EUR/USD: during the Asian session the pair rose $ 1.3140

GBP/USD: during the Asian session the pair rose $ 1.5600

USD/JPY: during the Asian session the pair around Y99.10

There is a full data calendar in Europe Monday, although market reactions could be muted, with the UK centre closed to celebrate the Bank Holiday. The early releases on the Continent will see the final April services PMI numbers cross the wires. Spanish services PMI numbers are first up, at 0713GMT, followed by Italy at 0743GMT, France at 0748GMT, Germany at 0753GMT and the overall EMU data due at 0758GMT . No doubt these PMI data will confirm the narrative already seen in the flash data 10 days or so ago and which proved, in part, the catalyst for he ECB to take the recent policy action it did. At 0900GMT, the EMU March retail trade numbers will hit the screens. At 1300GMT, ECB President Mario Draghi is slated to speak in Rome, with ears open to any nuances following the rate cut last Thursday. Comments form Pierre Moscovici, French FinMin, are likely to further undermine the simmering tensions between Germany and France, the FT says. According to the FT, Moscovici hailed the "end of the dogma of austerity" in a radio interview after his German counterpart, Wolfgang Schauble, offered more flexibility on deficit cutting.

01:30 Australia Retail sales (MoM) March +1.3% +0.2%

01:30 Australia Retail Sales Y/Y March +4.6%

01:30 Australia ANZ Job Advertisements (MoM) April -1.5%

01:45 China HSBC Services PMI April 54.3

06:00 United Kingdom Bank holiday

07:00 United Kingdom Halifax house price index April +0.2% +0.2%

07:00 United Kingdom Halifax house price index 3m Y/Y April +1.1%

07:50 France Services PMI (Finally) April 44.1 44.1

07:55 Germany Services PMI (Finally) April 49.2 49.2

08:00 Eurozone Services PMI (Finally) April 46.6 46.6

08:30 Eurozone Sentix Investor Confidence May -17.3 -14.6

09:00 Eurozone Retail Sales (MoM) March -0.3% -0.1%

09:00 Eurozone Retail Sales (YoY) March -1.4% -2.2%

12:30 Canada Building Permits (MoM) March +1.7% +0.7%

13:00 Eurozone ECB President Mario Draghi Speaks

14:00 Canada Ivey Purchasing Managers Index April 61.6 58.3