Tuesday, June 3, 2014


Market Comment

US indices were mixed on Monday. Shares in the Media, Insurance and Consumer Services sectors traded higher while shares in the Household & Personal Products, Software & Services and Food, Beverage & Tobacco sectors were under pressure. The S&P 500 (1924.97) remains above its 20d moving average (1892.3 - positive slope) and its 50d moving average (1875.6 - positive slope).

European markets are expected to start on a flat note.

Foreign Exchange

US Dollar fell against most of its major counterparts on Monday. On the US economic data front, ISM manufacturing index rose to 55.4 in May (55.5 expected and 54.9 in April). Also, construction spending increased 0.2% MoM in April (+0.6% expected).

The Australian Dollar fell against its major counterparts.


After the close of Wall Street, WTI Crude Future (JUL 14) was about flat to $102.41. The contract was above its 20D MA (@ $101) and above its 50D MA (@ $100.35).

Gold was down $6.2 to $1243.5. The precious metal was below its 20D MA (@ $1285) and below its 50D MA (@ $1293). The 14d RSI below 30 (25.63) indicates gold was oversold.

Copper Future (JUL 14) on Comex was up 4.3c to 316.65c/lb. The contract was above its 20D MA (@ 307.41c) and above its 50D MA (@ 303.17c). In Europe, the London Metal Exchange reported its copper inventories decreased 525 tons to 170825 tons.

UK Market News

Ireland: The Investec Manufacturing PMI Ireland Index edged down to 55.0 in May from 56.1 in April. The report pointed out: "May data signalled a further marked improvement in the Irish manufacturing sector. Solid growth of output and new orders was recorded and firms reacted to increased workloads by raising employment at the fastest pace since December 1999. The rate of input cost inflation remained only slight during the month and firms reduced their output prices again in response to strong competition."
AstraZeneca provided an update on its oncology pipeline: "Small molecules (...) Data from a Phase II study by the US National Cancer Institute (NCI) were presented as a late-breaking abstract (Saturday 31 May), investigating the combination of olaparib and cediranib in patients with platinum-sensitive high-grade serous ovarian cancer. (...) AstraZeneca supports the NCI's plans to move the combination forward into Phase III development. (...) Immuno-oncology (...) AstraZeneca plans to initiate a Phase III study investigating MEDI4736 in combination with tremelimumab for patients with NSCLC, as an additional arm of the ARCTIC clinical programme."

European Markets

ECB: Publication of the Consolidated Financial Statement of the Eurosystem (3pm CET)

Conference: 8th Annual Achieving HR Excellence in Telecom Summit

Today's Economic Events

EC 10:00: APR Euro-Zone: Unemployment Rate: 11.8%
US 15:00: APR Factory Orders: 0.1%
US : MAY Total Vehicule Sales (Mln): 16
US : MAY Domestic Vehicule Sales (Mln): NA

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