Fundamental News: July 10, 2013
The Canada Mortgage and Housing Corporation declared yesterday that Housing Starts grew at an annualized reading of 200,000 in June, following a 205,000 increase in May. The growth in construction of new residential buildings reflects a general stability in its trend, and “as a result, the trend in national housing activity remains close to its historical average,” according to Mathieu Laberge, CMHC’s Deputy Chief Economist.
UK’s Gross Domestic Product grew 0.6 percent during the second quarter of 2013, according to the latest GDP Estimate by the National Institute of Economic and Social Research (NIESR). The GDP growth was mainly attributed to private service sector, while the productions sector output flattened.
Meanwhile, the US Bureau of Labor Statistics reported in its latest Job Openings and Labor Turnover Summary (JOLTS) that jobs openings picked up in May as employers elected to hire more as they anticipate growth in demand. The summary revealed that job openings stood at 3.83 million, with separations rate at 3.2 percent and hires rate at 3.3 percent.
Today, Japan was out early with its Tertiary Industry Activity data for May, which stood at 1.2 percent, a huge improvement from the last two month’s negative readings.
In China, Customs General Administration of China (CGAC) announced that Trade Balance for June stood at CNY27.1 billion, and showed a decline in both imports and exports, fueling concerns of further economic slowdown in the top 2 economy in the world. Imports eased 0.7 percent, while exports declined 3.1 percent.
Later in the afternoon, traders will be keen to hear US Fed Chairman Bernanke’s speech, preceded by the US FOMC Meeting Minutes.
The slow uphill climb in Gold continues for a third day, following a near-breach of the $1,200 level last Friday. Yesterday’s $1,260 has not been taken out yet, but price action suggests it will be torn soon. Despite this likelihood, the $1,260-80 area could still pose as a headache to eager bulls. Next resistance lies around $1,300-50.
Strong momentum in oil saw it consolidate at a much higher level—above 102—during the first two days of the week, and this emboldened more bulls to join the fray. After easing below yesterday’s close for a short while, oil powered higher to take out the $104 level and is currently closing in on $105. Tougher resistance is expected around $105-$106.50. Bulls should avoid being exuberant as price is vulnerable to fakeouts at this stage.