- Chinese Q1 GDP again handily exceeded expectations, igniting inflation worries overnight.  Asian Indices lost ground led by the Shanghai Composite, which gave back 4.5% before the delayed GDP announcement.  US Indices are lower in conjunction with overseas bourses but volatility is again tied to Q1 earnings reports.  Managed care and orthopedic device names are weighing on healthcare stocks after SYK and UNH reports.  SYK ??“5.7% ZMH ??“2% SNN ??“1.5% UNH ??“4% CI ??“1.5% AET ??“2.2% WLP ??“2%  E*Trade and Options Express are lower after reporting as well.  Altria is off 1.9% keeping pressure on the Dow.  It is worth noting that US Indices have recouped a portion of their losses after bond markets moved down from their best levels, following a similar pattern in European trade.  Crude futures are slipping ahead of tomorrow??™s roll over from the May to the June contract.  June is down $1.16 at $63.22 while May is off $1.60 at $61.50 driving the OIH ??“1% to a third straight day of losses.

- US Treasury markets opened higher, but interestingly have seen some selling since the release of higher than expected weekly initial jobless claims.  The yield on the Bund has moved steadily higher as well, but the spread between the 10-year Treasury has narrowed to the lowest levels in over a year.  Chatter of a large seller in June Bund futures has been cited as a reason for the rebound in yields with market participants pointing to Greek redemption trades.  US 10-year 4.66%; Bund 4.19%  The EUR/USD is holding above 1.36 after the German Finance Minister said his country can cope with the current Euro exchange rate.  The USD/JPY has been lower throughout the session as dealer chatter of a likely upcoming change to Japanese merger & acquisition laws has led to some unwinding of carry trade positions.  June Gold is $5 off of earlier lows but still giving back nearly 1% while copper is at lows down 2.5% at $3.52 in the May contract.