Markets consolidate ahead of US non-farm payroll data

Friday, June 06, 2014

Asian equity markets were trading sideways within the recent range. The Nikkei remained fairly flat at the 15077 points, while the Hang Seng slid slightly lower (-0.23), following the recent modest Chinese PMI data. Japan’s leading indicator declined by 0.5% in April, adding pressure to the JPY which fell slightly towards 102.20.

Nikkei Index Daily Chart

NKY Index (Nikkei 225)  Daily 06 2014-06-06 08-48-16

German industrial output rose by 0.2% in April, missing analysts’ expectations. German exports surged by 3% in April compared to a modest rise of 1.5% in March, showing signs of strong improvement. The euro rebounded strongly and traded back to the 1.365 area. European equity markets consolidated in early trade this morning, ahead of the release of US non-farm payroll figures.

German Exports Quartely Chart over 10 years

GRBTEXMM Index (Bundesbank Germa 2014-06-06 08-46-32

 

Gold has been on track for its first weekly increase in three weeks, hovering around $1255 in early trade this morning. Silver also edged higher, holding above the $19 level. Precious metals were supported by a series of measures from ECB and a cut in interest rates which were aimed at helping the sluggish European economies.

XAU Spot- Gold Weekly Chart

XAU Curncy (Gold Spot   $_Oz )  2014-06-06 08-47-40

Energy: Brent front month futures edged higher to consolidate just under $109 per barrel in early trading this morning, but were set to post a second consecutive weekly loss amid easing tensions between Ukraine and Russia and high crude oil supply levels. The WTI front month contract held around 102.50 per barrel this morning, ahead of the release of key US employment data.

 

Events for today:

 

0600

JP

Apr

Leading Index

0700

DE

Apr

Trade Balance

0930

UK

Apr

Trade Balance & Non EU

1330

US

May

NF Payrolls & Unemployment

2000

US

Apr

Consumer Credit

 

 

All times UK Local Time

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