Thursday, June 5, 2014

EVENTS & FINANCIAL NEWS 05-06-2014

Market Comment

US indices closed higher on Wednesday helped by shares in the Automobiles & Components, Insurance and Food & Staples Retailing sectors. US companies added 179K jobs (210K expected) in May after a downwardly 215K increased the previous month. The S&P 500 (1927.88) hit a new record high, and remains above its 20d moving average (1897.25 - positive slope) and its 50d moving average (1878.18 - positive slope).

European markets are expected to open on a positive note.

Foreign Exchange

US Dollar was mixed against most of its major counterparts on Wednesday. On the US economic data front, MBA Mortgage applications for the week ended May 30th fell 3.1%. US companies added 179K jobs (210K expected) in May after a downwardly 215K increased the previous month. The trade deficit grew by 6.9% to $47.2B ($40.8B expected) in April. Finally, ISM non-manufacturing jumped to 56.3 (55.5 expected) in May from 55.2 the previous month.

The Euro was under pressure against its major counterparts. Euro-zone PMI composite index was 53.5 in final estimation for May vs 53.9 in first reading and 54 the month before. Euro-zone PMI services index was 53.2 in May in final estimation vs 53.5 in preliminary estimation and 53.1 in April. Still in euro-zone, GDP growth was confirmed at +0.2% for 1Q. Finally euro-zone PPI index fell 0.1% in April, as expected, after a 0.2% decrease in March.

The Australian Dollar was mixed against its major counterparts.

Commodities

After the close of Wall Street, WTI Crude Future (JUL 14) was about flat to $102.43. The contract was above its 20D MA (@ $101) and above its 50D MA (@ $100.35). The US Department of Energy reported that, for the week ended 30 May, crude oil inventories fell 3431k barrels compared to the previous week.

Gold was about flat to $1243.6. The precious metal was below its 20D MA (@ $1279) and below its 50D MA (@ $1290). The 14d RSI below 30 (28.08) indicates gold was oversold.

Copper Future (JUL 14) on Comex was down 4.2c to 309.45c/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 350 tons to 168475 tons.

UK Market News

Ireland: The Investec Services PMI Ireland edged down to 61.7 in May from 61.9 in April. The report pointed out: "The recent strong expansion in the Irish service sector continued in May, with activity and new business again rising sharply during the month. Panellists took on extra staff in order to deal with increased workloads. Meanwhile, output prices were raised for the second month running, but the rate of inflation remained marginal amid pressure from clients."

European Markets

ECB: Governing Council meeting (9am CET) and rate decision at 1:45pm CET, followed by a press conference at 2:30pm CET

Today's Economic Events

FR 06:30: 1Q Unemployment Rate: NA
FR 06:30: 1Q Unemployment Change (Thsd) (QoQ): NA
EC 10:00: APR Euro-Zone: Retail Trade (MoM): 0%
UK 12:00: BoE: Rates decision: 0.5%
EC 12:45: ECB: Rates decision: 0.1%
US 13:30: W21 Initial Jobless Claims (Thsd): 310

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