Tuesday, July 1, 2014


Market Comment

US indices were mixed on Monday. Shares in the Utilities, Semiconductors & Semiconductor Equipment and Technology Hardware & Equipment sectors traded higher while shares in the Capital Goods, Consumer Services and Household & Personal Products sectors were under pressure. The S&P 500 (1960.23) remains above its 20d moving average (1948.2 - positive slope) and its 50d moving average (1911.5 - positive slope).

European markets are expected to start on a positive note.

Foreign Exchange

The US Dollar fell against most of its major counterparts on Monday. On the conomic data front, Pending Home Sales increased by 6.1% (1.5% expected) MoM in May. Dallas Fed Manufacturing Activity was 11.4 (8.5 expected). The Chicago Purchasing Manager came in at 62.6 (63 expected).

The Euro was mixed, rising against the USD and JPY, while falling against the GBP and CHF. In Europe, German retail sales fell 0.6% in May when the market was expecting a growth of 0.7%. Euro-zone M3 money supply growth quickened to 1.0% on year in May. The euro-zone core CPI rose to 0.8%, beating expectations of 0.7%.

The Australian Dollar was under pressure against most of its major counterparts


After the close of Wall Street, WTI Crude Future (AUG 14) was about flat to $105.42. The contract was above its 20D MA (@ $101) and above its 50D MA (@ $100.35).

Gold was up $10.9 to $1327.1. The precious metal was above its 20D MA (@ $1284) and above its 50D MA (@ $1286).

Copper Future (SEP 14) on Comex was up 3.7c to 320.5c/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 475 tons to 154675 tons.

UK Market News

London Stock Exchange Group: S&P said it has kept the Co's "A-" long-term counterparty credit rating "on CreditWatch with negative implications". The rating firm added: "LSEG has announced its intention to acquire Frank Russell Co., a US-based financial services group. (...) although the deal is sizable and a logical continuation of LSEG's diversification strategy, it is not transformative for the group's business profile. In addition, although we expect the group's pro forma financial metrics to deteriorate from their March 2014 position, we anticipate that LSEG will be able to restore them to satisfactory levels within 12 months of completing the acquisition."

European Markets

ECB: Publication of the Consolidated Financial Statement of the Eurosystem, 10 a.m. CET

Today's Economic Events

GE 08:55: JUN Unemployment Change (Thsd): NA
GE 08:55: JUN Unemployment Rate: NA
EC 10:00: MAY Euro-Zone: Unemployment Rate: NA
US 15:00: MAY Construction Spending (MoM): 0.5%
US 15:00: JUN ISM - Manufacturing: 55.4
US 15:00: JUN ISM - Price Paid: NA
US : JUN Total Vehicule Sales (Mln): 16.4
US : JUN Domestic Vehicule Sales (Mln): NA

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