Chinese and Japanese manufacturing returns to growth

Monday, June 23, 2014

China’s HSBC manufacturing PMI surged to 50.8 in June compared to 49.4 in May, beating analysts’ expectations. China showed its frist PMI expansion in 6 months, as orders surged verifying a steady economic recovery. In addition, Japan’s manufacturing PMI flash also increased to 51.1 in June, moving into development territory. The JPY came under pressure after trading around 101.80 against the USD, down 0.2%. Despite the robust manufacturing PMI data from both China and Japan, the Hang Seng index retreated sharply more than 300 points (-1.4%), while the Nikkei consolidated around 15370 points.

China's HSBC Manufacturing PMI

MPMICNMA Index (HSBC China Manuf 2014-06-23 09-03-44

 

The US equity markets edged higher on Friday and the Dow Jones index managed to finish the week on the positive side after consolidating around the 16,950 points. The USD index held strongly above 80.0 following the recent solid US economic data and optimistic news from the latest FOMC meeting. Today, the main focus will turn to the release of the Markit manufacturing and services PMI flash data from the Eurozone and Germany as well as US Markit manufacturing PMI flash and existing home sales figures.

USD Index

DXY Curncy (DOLLAR INDEX SPOT)  2014-06-23 09-04-11

Gold eased further from a two-month high following a bit of sluggish physical appetite. However, it seems that the precious metal acted as safe-haven again after escalating violence in Iraq managed to hold gold around $1,300/ounce. Platinum and Palladium were down by 0.6%, due to a small correction lower.

XAU- Gold Spot

XAU Curncy (Gold Spot   $_Oz )  2014-06-23 09-04-27

Energy: Brent crude jumped above $115 a barrel, holding near a nine-month high amid persistent concerns of possible disruptions to oil supplies from Iraq as Sunni rebels held control of more towns over the weekend. The WTI front month contract held above $115 per barrel, tracking solid gains in Brent futures.

Brent Futures Front Month

COQ4 Comdty (BRENT CRUDE FUTR  A 2014-06-23 09-04-45

 

Events for today:

 

0245

CN

Jun

HSBC Manufacturing PMI

0830

DE

Jun

Markit Mfg Flash

0900

EZ

Jun

Markit Mfg Flash

1330

US

May

Chicago Fed

1500

US

May

Existing Homes Sales

 

All times UK Local Time

 

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