Fundamental News: June 25, 2013
National Bank of Belgium reported yesterday that the NBB Business Climate index went down in June, falling to -12.8 after improving slightly in May. The decline was brought about by a marginal decline in business confidence in the building and manufacturing industries. On the other hand, the outlook for the general market demand edged higher.
Today, a Bank of Japan report showed the Corporate Services Price Index advanced 0.3 percent in May, following a fall of 0.3 percent back in April. Discounting the flat reading in February, the latest reading is the first positive result in one year.
In Europe, British Bankers’ Association its latest Mortgage Approvals data, which showed that the number of mortgages approved grew by 36,100 in May, better than the median estimate of 33,100. This is the third straight monthly gain in this data. Meanwhile, Confederation of British Industries noted that Realized Sales turned positive for the first time in three months, with the index printing +1 after posting -11 and -1 in May and April, respectively.
Later, the market can expect more action with the release of US data, particularly Durable Goods Orders, S&P/CS Composite-20 House Price Index, CB Consumer Confidence, as well as New Home Sales. ECB’s Draghi will also give a speech, followed by a speech from US Treasury Secretary Lew much later in the afternoon.
Consolidation from Friday continues in Gold, with the $1,300 handle keeping the lid on bullish attempts at making a recovery. Consolidation could go on until tomorrow, when more economic releases will hit the wires. A move back above $1,300 remains highly critical for the bulls.
Oil made a healthy, nearly-$3 bounce yesterday, mirroring the daily open and close (only in reverse) printed back in Friday. Price has made a marginal higher high so far, resting in the mid-$95s after touching the $96 level. $95 needs to hold in order for bulls to gain momentum for a thrust toward $98.