Fundamental News: August 28, 2013
Standard & Poor’s revealed yesterday that the S&P/Case-Shiller Composite-20 House Price Index advanced 12.1 percent in June, just a notch lower than the best level seen since March 2006. This indicates that the momentum of the housing market’s improvement is continuing.
Meanwhile, The Conference Board announced that Consumer Confidence rose to 81.5 this August. This is the third straight reading above the 80 level.
Today, Australian Bureau of Statistics said Construction Work Done eased 0.3 percent in the June quarter of this year. Analysts were expecting an improvement to 1.1 percent after the prior quarter’s 1.9 percent decline.
In Europe, Gfk German Consumer Climate stood at 6.9 this August, slightly easing from July’s 7.0 reading (the six-year high). German Import Prices rose 0.3 percent as expected.
Euro-area M3 Money Supply advanced 2.2 percent in July, slightly higher than expected.
In the UK, the Confederation of British Industry reported that CBI Realized Sales surged to 27, the strongest reading since November 2012. Sales exceeded expectations; analysts only looked for a minor increase to 19, after it jumped to 17 back in July.
Soon, traders will focus on the impending Bank of England Chief Carney’s speech, followed later by the release of US Pending Home Sales.
Gold is sailing higher for a fifth straight day, slowly inching up through the resistance around $1,425. Bulls should make a strong showing here so they can advance toward next possible resistance area around $1,480-$1500 where more bears are expected to be hiding.
Oil popped higher yesterday, clearly blowing the lid off the triple top area just below $109. A strong close just above this level has been followed by a quick upswing through the mentioned upside target at $110.50. So far, $112 has been reached before price eased back toward the lower-$110s. Bears would certainly get worried if price stabilizes above $109-$110.