Fundamental News: August 9, 2013

Statistics Canada stated that New Housing Price Index edged up 0.2 percent in June, succeeding a 0.1 percent advance back in May. Calgary led the advance for a fifth straight month.

 

In the United States, the Department of Labor reported that Unemployment Insurance Weekly Claims advanced by 5,000 to seasonally adjusted 333,000 during the week ending August 3.

 

Today, Japan’s METI said Tertiary Industry Activity eased 0.3 percent in June, weaker than expected and a considerable decline from the 1.3 percent gain registered back in May. M2 Money Stock increased 3.7 percent year-on-year, BOJ revealed earlier.

 

In China, Consumer Price Index rose 2.7 percent in July, similar to June’s reading. On the other hand, Producer Price Index declined 2.3 percent which was slightly worse than expected. Fixed Asset Investment was unchanged from the previous month at 20.1 percent. Industrial Production improved 9.7 percent, while Retail Sales increased 13.2 percent. New Loans increased CNY700 billion which was more than expected. Finally, M2 Money Supply advanced 14.5 percent.

 

France’s Industrial Production decreased 1.4 percent in June. This was a surprise decline and much worse than the 0.3 percent estimated gain.

 

The United Kingdom posted a narrower-than-expected trade deficit in June. The Office for National Statistics declared that Trade Balance stood at –GBP8.1 billion, buoyed by a 4.9 percent advance in exports.

 

Later, Canada’s CMHC will report on the latest Housing Starts data, while Statistics Canada will reveal Employment Change and Unemployment Rate.

 

Commodities News

 

Gold buyers took price $32 higher and closed Thursday well above the $1,300 level after the $1,270s held nicely. Now, buyers are engaging the first wave of sellers guarding the $1,350 area. Buyers should aim to close the week at or above this level.

 

 

Oil sellers were able to successfully drive price lower and complete its fifth consecutive bearish daily close. However, there were obvious signs of contention as price closed above $103 after reaching below $102. Currently, buyers are doing a good job of supporting $103, but they must end the week around $104.

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