Equities pull back from record highs on lack of macro data

Tuesday, June 10, 2014

European equity markets consolidated today, pulling back from record levels as a quiet trading session left investors struggling to find impetus for further gains. UK industrial and manufacturing production data failed to surprise on either side, posting month-on-month growth of 0.4% apiece in April. With the trading session largely void of significant macro data from the US, London’s blue chip index spent the day trailing lower, on track to snap a two day winning streak while wider European benchmark indices started the session on the back foot before swinging to gains during the early afternoon.

Levels towards the close were swinging between positive and negative territory as a subdued US open dragged sentiment lower. Wall Street has so far been unable to post fresh highs this morning as a lack of key macro data saw both the S&P 500 and DJIA pull back from their recent record highs. The dollar index pushed higher for the third straight session today with intraday gains testing levels towards 80.450. Despite the stronger dollar, front month WTI prices remained well supported early on while spot gold prices managed to build on support around $1,250/oz, last trading just below $1,260/oz.  

Three month LME nickel prices continued to consolidate lower today, as intraday dips tested the recent low towards $18,524/tonne. Prices have shed almost 14% since the year-to-date peak in May after rallying over 55% since the start of the year.

DXY gains for a third straight session 

DXY Curncy DOLLAR INDEX SPOT 2014 06 10 16 17 24

LME three month nickel prices consolidate lower

LMNIDS03 Comdty LME NICKEL 3 2014 06 10 16 35 17

Topics: Equities, DXY, LME, Nickel
More from: Kash Kamal