Fundamental News: June 26, 2013

The Census Bureau in the United States reported Tuesday that Durable Goods Orders rose 3.6 percent in May, slightly surpassing the prior month’s 3.5 percent reading and the median estimate of 3 percent. The core component of the Durable Goods Orders rose 0.7 percent, after rising 1.5 percent in April.

 

Standard & Poor’s also published a better-than-expected reading for the S&P/CS Composite-20 House Price Index. The index climbed for the eleventh straight month and advanced 12.1 percent, the best advance in seven years and bolsters the view that the housing market is gaining further strength.

 

Meanwhile, CB Consumer Confidence climbed for the fourth straight month in June, rising to 81.4 after posting 74.3 back in May, according to The Conference Board.

 

US New Home Sales likewise beat expectations as it increased 476,000 in May. It has beaten expectations for the third consecutive month, if the monthly revisions are taken into account.

 

Today, Asia was devoid of typical economic data releases, hence attention focused on Europe.

 

Gfk declared earlier that the German Consumer Climate rose to 6.8 in June. The index has risen steadily since last December, and is expected to push higher as income and economic expectations advance further.

 

Later today, attention will center on the release of US Final GDP.

 

Commodities News

 

Gold traded a mere $18 range yesterday, and it turns out this was just a precursor to another leg down in the yellow metal. Price has declined $53 so far, reaching levels not seen since early August 2010. Gold should stabilize above $1,200 soon; otherwise, price could descend further into the $1,000-$1,150 area.

 

Oil was a different story as it took a peek through the $96 level yesterday but ended the day nearly unchanged. The follow-on downside move today stopped short of reaching the $94 level. Price is currently resting just above $95, and it looks like bulls are looking for another test of $96. They should do much better and aim for mid-$97s as soon as they can.

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