Markets consolidate ahead of the US Federal Budget

Wednesday, June 11, 2014

Asian equity markets were fairly mixed, while the JPY consolidated around 102.20. The Nikkei index posted modest gains climbing by 75 points (+0.5%), supported by solid Japan’s economic data as corporate goods rose by 0.3% in May, beating expectations. However, Japan’s Business survey index was reported at -13.9 in Q2 2014. On the other hand, the Hang Seng gave back part of yesterday’s gains and fell slightly lower by 0.25% due to some profit taking.

The US equity markets ended fairly flat on Tuesday, as market participants remain cautious ahead of the release of the US Federal Budget details. The USD index edged higher to retest the 80.8 area.

In the UK, market attention will turn to the release of the ILO unemployment data and Claimant Count figures for further direction. Sterling came under some pressure this morning, trading around 1.675, while the euro was broadly unchanged at 1.35 against the USD. European equity markets opened the session slightly lower this morning, after a robust 3-week upside rally.  

GBP Spot

GBP Curncy (British Pound Spot )  2014-06-11 08-41-27

 

EUR Spot under pressure

EUR Curncy (Euro Spot )  Daily 11 2014-06-11 08-41-46

Palladium declined from its highest level in more than 3 years due to some profit taking as prices yesterday hit a high at $856.01 to close the session at $854.60. Palladium prices have been supported by strong physical demand in jewellery and auto catalysts in the last few months as well as a five-month strike in South Africa.

XPD Spot- Palladium

XPD Curncy (Palladium Spot  $_Oz 2014-06-11 08-40-31

Energy: Brent front month futures climbed towards $110 per barrel in early trading this morning ahead of the OPEC meeting results. In addition, crude prices were supported by expectations of a decline in the US gasoline stocks and tensions in Iraq could worsen, raising oil supply issues.

 

Events for today:

 

0930

UK

May

Claimant Count &

ILo Unemployment

1530

US

w/e

EIA Energy Stocks

1900

US

May

Fed Budget

 

 

All times UK Local Time

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