Thursday, July 3, 2014


Market Comment

US indices were mixed on Wednesday. Shares in the Pharmaceuticals, Biotechnology & Life Sciences, Media and Health Care Equipment & Services sectors traded higher while share in the Utilities, Insurance and Consumer Durables & Apparel sectors were under pressure. Fed chairman Yellen said rates shouldn't be main tool ensuring stability and rate policy shouldn't change over stability concern. The S&P 500 (1974.62) remains above its 20d moving average (1953 - positive slope) and its 50d moving average (1915.4 - positive slope). Watch today's employment report and US market will close early.

European markets are expected to open on a flat note.

Foreign Exchange

The US Dollar was up against most of its major counterparts on Wednesday, with the exception of the GBP. On the economic data front, MBA Mortgage Applications fell by 0.2% (-1% prior) for the week ending June 27th. The ADP Employment Change was 281K (205K expected) in June. Factory Orders fell by 0.5% (-0.3% expected) in May.

The Euro was mixed, rising against the JPY and AUD, while falling against the GBP and USD. In Europe, the euro-zone PPI eased down by a seasonally adjusted 0.1% in May, in line with expectations. Producer prices inched down 0.1% in April. Spain unemployment change came in at -122.7K below forecasts in June.

The Australian Dollar fell against all of its major counterparts.


After the close of Wall Street, WTI Crude Future (AUG 14) was down $1.1 to $104.22. 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 27 June, crude oil inventories fell 3155k barrels compared to the previous week.

Gold was about flat to $1326.8. The precious metal was above its 20D MA (@ $1293) and above its 50D MA (@ $1288).

Copper Future (SEP 14) on Comex was up 5.6c to 326c/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 2075 tons to 156775 tons.

European Markets

ECB: Governing Council meeting of the ECB in Frankfurt at 10am CET and ECB will announce rate decision at 1:45pm CET, following by the press conference at 2:30pm CET

Today's Economic Events

EC 10:00: MAY Euro-Zone: Retail Trade (MoM): 0.3%
EC 12:45: ECB: Rates decision: 0.15%
US 13:30: W25 Initial Jobless Claims (Thsd): 313
US 13:30: MAY Trade Balance (Bln): -45
US 13:30: JUN Unemployment Rate: 6.3%
US 13:30: JUN Change in Nonfarm Payrolls (Thsd): 215
US 13:30: JUN Change in Manufact. Payrolls (Thsd): 10
US 15:00: JUN ISM - Non Manufacturing: 56.3

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