Asian markets creep higher on optimistic outlook

Monday, June 30, 2014

US markets managed to end the week on a positive footing as both the S&P 500 and DJIA pushed higher on Friday, recovering much of the losses accrued earlier in the week. The University of Michigan consumer sentiment index supported buying activity, coming in 0.5 points higher than expected for a June reading of 82.5 and with Chicago PMI and Dallas Fed manufacturing activity data expected later today as well as pending home sales market participants will have plenty to look ahead to as they look for further data to support the continued rebound in the US economy.

Asian benchmark indices got off to an encouraging start to the week as tech stocks led the push higher across the region. With central bankers in recent weeks providing further clarification regarding monetary stimulus and the timeframe for withdrawal, investors have switched attention back to corporate fundamentals in the hopes of generating excess returns. Japanese stocks were encouraged higher after month-on-month industrial production in May rebounded from -2.8% the previous month to an increase of 0.5% m/m. The JPY strengthened against the dollar for a fourth session, pushing towards 101.25 against the dollar during overnight trading as overall sentiment in the region showed clear signs of improvement.

LME three month copper prices rallied higher last week, adding almost 2% from Monday’s opening price as encouraging Chinese manufacturing PMI data supported the move higher. Prices were also pushed higher ahead of the release of official manufacturing PMI data and HSBC’s final manufacturing PMI reading for June. The red metal reached an intraday high of $6,983.75/tonne on Friday, a level last reached in early-March.

 University of Michigan index increases m/m

CONSSENT Index University Of Mi 2014 06 30 07 23 30

Japanese industrial production rebounds in May

JNIPMOM Index Japan Indices Of 2014 06 30 07 29 42 

Events for today

0930

UK

May

Consumer Dredit

1000

EZ

Jun

Inflation Flash

1445

US

Jun

Chicago PMI

1500

US

May

Pending Home Sales

1530

US

Jun

Midwest Manufacturing

 

 

Topics: Copper, Equities, LME
More from: Kash Kamal