S&P 500 touches record high at 1,900

Wednesday, May 14, 2014

The S&P 500 closed at a record high as the index briefly topped 1,900 for the first time after firm economic data supported higher levels. Despite retail sales slightly missing expectations of 0.4% m/m growth in April, coming in at 0.1% m/m, market participants were encouraged by the upward revision to March retail sales which increased 1.5% m/m, well ahead of the 1.1% previously reported. With a dearth of economic data yesterday, investors struggled to find justification for significant moves higher but the sense of market optimism was enough to support benchmark indices at record levels. Today sees the release of PPI for April as well as EIA crude inventories which will offer further insight into the demand situation.

Asian markets struggled with direction during overnight trading as the positive tones from Wall Street failed to carry over. Mainland Chinese indices slipped lower, struggling to hold on to the previous close as market participants continued to digest the weaker than expected industrial production and retail sales data while shares in Hong Kong pushed higher on PBOC comments to increase lending commitments.

Spot gold prices continued to trade rangebound yesterday, underpinned by resistance at the 200 day MA towards $1,300/oz while support from the 100 day MA squeezes prices into a tight pattern. Meanwhile spot platinum prices rallied 1.22% higher yesterday as prolonged industrial action in South Africa showed no sign of abating soon. The metal rose towards $1,460/oz yesterday with prices this morning finding strong support as yesterday’s close. The strike, now in its fourth month, has shuttered an estimated 40% of global production sending platinum prices 7.5% higher since the start of the year.  

Sterling rose to its highest level against the euro since February 2013 ahead of a string of economic data out today. As well as the claimant count and ILO unemployment rates the BoE will be releasing their quarterly inflation report later on this morning. The GBP/EUR cross pushed towards 1.2289, rallying higher for a fifth session as market participants expected the unemployment rate to fall further.

S&P 500 holds onto firm support as intraday moves touch above 1,900

SPX Index SP 500 Index Daily 2014 05 14 07 22 01

Gold prices continue to trade rangebound, underpinned towards $1,300/oz

XAU Curncy Gold Spot Oz 2014 05 14 07 39 01

Platinum prices rally as strikes in South Africa show no sign of abating

XPT Curncy Platinum Spot Oz 2014 05 14 07 40 37

GBP pushes towards 16-month high ahead of unemployment, inflation report

GBPEUR Curncy GBP EUR X RATE 2014 05 14 07 52 58

 

Events for today

0700

DE

Apr

CPI Final

0930

UK

Apr

Claimant Count/ ILO Unemployment

1000

EZ

Mar

Industrial Production

1330

US

Apr

Core PPI

1530

US

w/e

EIA Energy Stocks

LT: 

May Cocoa (NYBOT & LIFFE) 

Topics: Equities, Gold, EUR, GBP, Platinum
More from: Kash Kamal