Fundamental News: July 12, 2013

 

Statistics Canada disclosed Thursday that New Housing Price Index (NHPI) came in lower than expected in May, edging up 0.1 percent versus 0.3 percent median expectation by analysts. Calgary led the national advance, while Winnipeg posted the largest year-on-year gain. NHPI has been on a slow but steady uptrend since the recovery back in mid-2009.

 

In the United States, the Department of Labor announced Unemployment Claims climbed more than expected and rose to a two-month high last week. 360,000 Americans filed for jobless benefits during the end-July 6 week, attributed to automobile plant closings which usually happen in July. Median forecast was 342,000 which was 2,000 less than the prior week’s revised reading.

 

US Import Prices contracted 0.2 percent in June, following a 0.7 percent decline in May, a Bureau of Labor Statistics report showed.

 

Meanwhile, the US Department of Treasury said the country posted a Federal Budget Balance of $116.5 billion in June, succeeding a $138.7 billion deficit in May.

 

Today, Australian Bureau of Statistics unveiled the latest Home Loans data, which showed the number of house loan approvals rose 1.8 percent in May, thanks to the record-low interest rates.

 

In China, New Loans also increased, posting CNY861 billion ($140 billion) in June, the People’s Bank of China published today in Beijing. M2 Money Supply grew 14 percent year-on-year, trailing the 15.3 percent forecast.

 

In Europe, Eurozone Industrial Production slipped a seasonally-adjusted 0.3 percent in May compared to the previous month, Eurostat reported earlier. The current decline breaks the data’s three-month rising streak.

 

Soon, traders will witness the release of US PPI and preliminary reading of the University of Michigan Consumer Sentiment.

 

Commodities News

 

It’s a breath of air as Gold made its fourth straight daily climb yesterday. However, price failed to touch the $1,300 level before Gold closed the day around $1,285. Today’s weak easing is a good indication for bulls, but they should exert more effort and take out the $1,300 level before the week closes.

 

 

The upside fakeout hinted to the other day came into fruition in Oil. Price initially rose above $107, but this was subsequently followed by a steady decline through several levels and saw price close the day in mid-$104. Based on price action, oil has somewhat bottomed in the lower $104s and price rallied back to the mid-$105s. A weekly close above $104-$105 is ideal.

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