Markets await key economic releases from the US and Eurozone

Wednesday, June 04, 2014

Asian equity markets were fairly mixed overnight. The Nikkei edged higher, gaining more than 0.2%, but the Hang Seng index reversed yesterday’s gains and slid lower by 0.7%. However, the JPY held fairly strong above 102.6 against the USD.   

European equity markets slid lower in early trade this morning, as investors remain cautious ahead of the release of Markit Services PMI data from the Eurozone, Germany and the UK, while the main focus will be on Eurozone’s GDP revised data for Q1 2014. The EUR came under pressure this morning trading just above the 1.36 area against the USD. Sterling was also lower in early trading, retreating towards 1.67.

GBP Spot

GBP Curncy (British Pound Spot )  2014-06-04 09-26-01

London copper prices retreated sharply to a two-week low at $6808.50 yesterday amid concerns over the Chinese manufacturing sector. Gold consolidated around a four-month low, as market participants remain cautious ahead of the release of key US economic data (ADP national employment and layoffs).

LME Copper Front Month

LMCADS03 Comdty (LME COPPER    3 2014-06-04 09-25-44

Energy: Brent front month futures consolidated around $109 per barrel in early trade today, as investors await the official weekly DOE oil inventories data. The release of the weekly API oil inventories numbers after the close of the trading session yesterday showed an unexpected decline of 1.4 million barrels in crude oil inventories for the week ending 30th May, while stocks in Cushing, Oklahoma, retreated by 300,000 barrels. Distillate stocks also declined by 300,000 barrels but gasoline inventories rose by 800,000 barrels.

 

Events for today:

 

0855

DE

May

Services PMI

0900

EZ

May

Services PMI

0930

UK

May

Services PMI

1000

EZ

Q1

GDP Revised

1315

US

May

ADP National Employment

1330

US

Apr

Trade Balance

1330

US

Q1

NF Prod. & Labour Costs

1500

US

May

ISM Non-Manufacturing

1530

US

w/e

EIA Energy Stocks

 

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