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Fundamental News: June 28, 2013

US Unemployment Claims came in just about in line with the median forecast for the prior week, according to the latest report by the Labor Department. Jobless insurance weekly claims declined to 346,000 for the end-June 22 week, down from last week’s revised reading of 355,000. 

In other US news, Core PCE Price Index inched higher by 0.1 percent in May. Personal Spending and Personal Income both improved, Bureau of Economic Analysis mentioned yesterday. Personal Spending grew 0.3 percent in May, after falling 0.3 percent. Meanwhile, Personal Income advanced 0.5 percent in May after registering a 0.1 percent gain back in April. The growth in Personal Spending underpins the outlook for a favorable quarter as household purchases account for roughly 70 percent of the economy. 

Pending Home Sales jumped 6.7 percent in May, the best level in more than six years. The actual figure is more than six times the median forecast and a huge turnaround from the prior month’s 0.5 percent decline. 

Following the overnight report from the US, Japan also declared their Household Spending data earlier today. Household spending decreased 1.6 percent on a year-on-year basis in May, according to the Statistics Bureau. Tokyo Core CPI edged up 0.2 percent; Unemployment Rate registered 4.1 percent for the third consecutive month; Preliminary Industrial Production climbed 2 percent (up from April’s 1.7 percent); and Retail Sales grew 0.8 percent year-on-year. 

In Australia, Private Sector Credit grew 0.3 percent for the second straight month, according to the latest report by the Reserve Bank of Australia. 

In Europe, German Retail Sales advanced 0.8 percent, the fastest rate in four months, augmenting signs of economic recovery in Germany. 

In the UK, Nationwide House Price Index notched higher by 0.3 percent on improvement of mortgage availability. 

To cap the week, the North American session will have releases such as Canada’s GDP, RMPI, and IPPI, followed by US Chicago PMI and revised University of Michigan Consumer Sentiment. 

Commodities News 

Gold completed its fourth downleg for this week, piercing through the $1,200 level temporarily and closing the day right around the level itself. This has very serious implications for bulls, particularly since today is the month and quarter-end. It is critical for buyers to quickly push for a significant rebound today, or they might have a problem pulling price higher in the coming weeks. 

 

On the other hand, Oil went on to print its fourth bullish day yesterday. Climbing past the $97 level was a big step, but they must try to end the week, month, and quarter with a strong close above the $97 or $98 level today. The resistance area around $98-$99 looms just ahead.

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