Fundamental News: September 16, 2013
The Department of Labor in the United States reported on Friday that Producer Price Index advanced 0.3 percent in August, following no change in July. The rise in producer prices was attributed to higher fuel and food costs. Core PPI was flat.
US Retail Sales, meanwhile, edged up 0.2 percent after registering a 0.4 percent gain in July, according to the Census Bureau. This is by far the weakest gain in four months and was softer than expected as analysts were looking for a 0.5 percent advance. Core Retail Sales was 0.1 percent.
The preliminary reading of the University of Michigan Consumer Sentiment plunged below 80 for the first time in 5 months. The index slid to 76.8 this September, following a revised-higher 82.1 reading in August.
Today, the Westpac Banking Corporation announced its latest Consumer Sentiment survey, which showed a slight decline to 115.4 from the previous quarter’s 116.6. The index has now remained above the 100 level for five straight quarters.
Japanese banks are closed today in commemoration of Respect-for-the-Aged Day.
In Europe, Eurostat released the latest Consumer Price Index for the Euro-area. The index showed a 1.3 percent gain in August, as expected and similar to July’s reading. Core CPI stood at 1.1 percent.
Soon, traders will witness the release of Canada’s Foreign Securities Purchases, US Empire State Manufacturing Index, US Capacity Utilization Rate, and US Industrial Production.
A terrible week for Gold bulls has just ended and it looks like they could be in for more pain this week. The week is still young yet sellers have already mounted an attack on the $1,300 level, with last week’s low at $1,304. Preliminary support could be seen around $1,250-80 if $1,300 breaks.
Oil traded for the most part above the $108 level last week, yet its weekly close still ended on a bearish note. Today, price wasted no time and continued to slid after a downside gap formed earlier today. Weak support around $106 would propel price to spiral downward toward $102-$104.