Japanese machinery orders slide sharply.

Japan's core machinery orders fell for the first month in three in April, dropping 8.8% on month vs +14.2% in March and consensus of -8.5%. The figures, which are a leading but volatile indicator of capex, show that companies are still reluctant to spend despite the government's and BOJ's stimulus policies. Prime Minister Shinzo Abe wants to change that with tax cuts on capex.