Wednesday, July 2, 2014


Market Comment

US indices rose on Tuesday led by shares in the Retailing, Pharmaceuticals, Biotechnology & Life Sciences and Automobiles & Components sectors. The S&P 500 (1973.32) remains above its 20d moving average (1950.6 - positive slope) and its 50d moving average (1913.5 - positive slope).

European markets are expected to start on a positive note.

Foreign Exchange

The US Dollar was mixed on Tuesday, rising against the EUR and JPY, while falling against the GBP and AUD. On the economic data front, US Manufacturing PMI was 57.3 (57.5 expected) in June. ISM Manufacturing was 55.3 (55.9 expected). ISM Prices Paid were 58 (60 expected). Construction Spending rose 0.1% (0.5% expected) MoM in May.

The Euro fell against most of its major counterparts with the exception of the JPY. In Europe, the euro-zone PMI fell to 51.8 last month, from 52.2 in May and the lowest mark since last November. The euro-zone jobless rate remained at 11.6% in May. April's figure had initially been reported at 11.7%, but was revised down to 11.6%. In Germany the unemployment rate was 5.1%.

The Australian Dollar rose against all of its major counterparts


After the close of Wall Street, WTI Crude Future (AUG 14) was about flat to $105.41. The contract was above its 20D MA (@ $101) and above its 50D MA (@ $100.35).

Gold was about flat to $1326.3. The precious metal was above its 20D MA (@ $1289) and above its 50D MA (@ $1287). The 14d RSI above 70 (71.22) indicates gold was overbought.

Copper Future (SEP 14) on Comex was about flat to 320.2c/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 increased 25 tons to 154700 tons.

European Markets

ECB: Publication of the Euro area insurance corporations and pension funds statistics (10am CET)

BMW reported June US sales up 5.7% YoY to 35,577 vehicles. In other news, the Co may invest $1B for its first assembly plant in Mexico, reported Dow Jones sources familiar with the situation.

Today's Economic Events

EC 10:00: MAY Euro-Zone: PPI (MoM): 0%
US 15:00: MAY Factory Orders: -0.3%
US 15:30: W25 Crude Oil Inventories (WoW chg): -2500

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