Equities under pressure ahead of key US economic indicators

Wednesday, June 25, 2014

Asian equity markets posted renewed losses overnight, tracking a weak session in the US equity markets. The Nikkei index retreated sharply more than 0.7% towards 15,250, while the Hang Seng fell slightly around 22,800. The JPY consolidated around the 101.90 area.

The US equity markets ended lower with the Dow Jones index falling more than 100 points (-0.7%) to retest 16,800. The S&P 500 also declined by 0.64% as investors remained cautious over the persistent tensions in Iraq and the key economic releases this afternoon. The main focus will turn to the release of GDP final and personal consumption data for Q1 2014 as well as Markit Services PMI for June and durable goods for May.  

German GfK consumer sentiment rose to 8.9 in July, beating expectations of 8.5. The EUR edged higher in early trade this morning holding above 1.36 against the USD. European equity markets opened the session on the negative side, posting modest losses following losses across the Asian and US equity markets.

EURUSD

EURUSD Curncy (EUR-USD X-RATE)   2014-06-25 09-12-48

Energy: Brent crude retreated below $114 per barrel as investors were prompted into some profit taking following the strong rally in the past two weeks. However, on-going uncertainty and violence in Iraq provide some support to the market. In addition, OPEC’s Secretary General reported yesterday that OPEC is ready to produce extra oil in the event of any possible supply disruptions caused by Iraq, as Saudi Arabia could increase oil capacity, if needed. The release of the weekly EIA oil inventories report could provide a better outlook for the US oil stock levels.

XAU Spot 

XAU Curncy (Gold Spot   $_Oz )  2014-06-25 09-12-19

LME Copper traded near a three-week high yesterday, holding around $6,900, while Aluminium continued its recent uptrend trading around $1,900. Gold retreated further towards $1300 as physical buying remained limited after prices surged to their highest level in two months in the previous session, while silver also slipped to $20.80 from a three-month top.  

LME Copper 3M

LMCADS03 Comdty (LME COPPER    3 2014-06-25 09-11-54

 

Events for today:

 

0700

DE

May

GfK Consumer Sentiment

0700

DE

May

Retail Sales

1330

US

May

Durable Goods & New Orders

1330

US

Q1

GDP & Personal consumption

1445

US

Jun

Markit Services PMI

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

More from: Myrto Sokou