Fundamental News: September 4, 2013
The Institute for Supply Management in the United States published the latest ISM Manufacturing PMI report yesterday. This showed the index climbed to 55.7 in August, following a jump to 55.4 back in July. The current reading was better than expected as analysts were looking for a slight contraction to 54.2. Meanwhile, the Census Bureau said Construction Spending rose 0.6 percent in July, thanks to increased construction of homes and commercial establishments.
Today, Australia Bureau of Statistics divulged that the Gross Domestic Product advanced 0.6 percent in the June quarter, slightly better than the first quarter’s advance.
In Europe, a host of Services PMI reports was released. The August Service PMI for Italy, Spain, Euro-area (Final Services PMI), and the UK came in at 48.8, 50.4, 50.7, and 60.5, respectively. For a third day in a row, UK PMI has beat expectations.
According to Eurostat, Euro-area Retail Sales barely increased in July at 0.1 percent.
Very soon, traders will certainly be on their toes as they await the release of US and Canada Trade Balance, BOC’s Rate Announcement and Statement, and US Beige Book.
Gold bulls certainly made a concerted effort yesterday. Price climbed $32 to $1,416, close enough to the $1,420-50 range mentioned yesterday. It is now up to other bulls to join the support group around the $1,400 level and fortify it. Traders could see fireworks later during the Bank of Canada’s Rate Announcement and Statement.
Oil continues to trade with a similar price action as that of Gold’s. Price sliced through $108 but the rally faded ahead of $109. Today, the $108 level is under fresh attack, but we could see bears struggle a bit here. Watch price action between $108 and $109.