Friday, June 6, 2014


Market Comment

US indices extended their gains on Thursday helped by shares in the Real Estate, Banks and Capital Goods sectors. The US initial jobless claims rose to 312K (310K expected and 304K prior) in the week ended May 31st. The S&P 500 (1940.46) hit a new record high, and remains above its 20d moving average (1900.36 - positive slope) and its 50d moving average (1879.68 - 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 Thursday. On the US economic data front, initial jobless claims rose to 312K (310K expected and 304K prior) in the week ended May 31st.

The Euro was mixed against its major counterparts. In Europe, ECB lowered its benchmark interest rate to 0.15% vs 0.25% previously. Deposit Facility Rate is now at -0.1% vs 0% initially. German factory orders jumped 3.1% in April after a 2.8% decline in March. Economists anticipated a 1.4% increase.

The Australian Dollar was firm against its major counterparts.


After the close of Wall Street, WTI Crude Future (JUL 14) was about flat to $102.58. The contract was above its 20D MA (@ $101) and above its 50D MA (@ $100.35).

Gold was up $9.7 to $1253.6. The precious metal was below its 20D MA (@ $1277) and below its 50D MA (@ $1290). The 14d RSI below 30 (26.67) indicates gold was oversold.

Copper Future (JUL 14) on Comex was about flat to 309.4c/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 550 tons to 167925 tons.

European Markets

ECB: Participation by Mr. Const├óncio in a discussion at 2014 IIF Spring Membership Meeting organised by the Institute of International Finance in London, United Kingdom, 10 a.m. local time / 11 a.m. CET

Deutsche Bank is under investigation by regulators into whether it hired children of Chinese government officials in order to obtain business favors, reported Reuters citing a source with knowledge of the matter. Yesterday the stock (-3.84% to E28.58) closed at a 3-month relative low against the Dax.

Today's Economic Events

FR 07:45: APR Trade Balance (Mln): -5000
GE 07:00: APR Current Account (Bln): 15.6
GE 07:00: APR Trade Balance (Bln): 15.1
GE 07:00: APR Imports (MoM): 0.8%
GE 07:00: APR Exports (MoM): 1.3%
FR 07:45: APR Central Govt. Balance (Bln): NA
GE 07:00: APR Industrial Production (MoM): 0.4%
UK 09:30: APR Trade Balance Non EU25 (Mln GBP): -3150
UK 09:30: APR Visible Trade Balance (Mln GBP): -8650
US 13:30: MAY Unemployment Rate: 6.4%
US 13:30: MAY Change in Nonfarm Payrolls (Thsd): 215
US 13:30: MAY Change in Manufact. Payrolls (Thsd): 10
US 20:00: APR Consumer Credit (Bln): 15

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