Fundamental News: October 2, 2013
Institute for Supply Management revealed on Tuesday that US Manufacturing PMI advanced for the fourth straight month in September. The index climbed to 56.2, better than the 55.3 forecast and follows the 55.7 reading back in August.
Today, Australian Bureau of Statistics published the latest Building Approvals and Trade Balance data. Building Approvals made a bigger decline than expected in August, sliding 4.7 percent compared to an expectation for a 0.7 percent decline. The July figure has also been revised down to 10.2 percent from 10.8 percent. Trade Balance also came in weaker than expected. A trade deficit of AUD952 million (-AUD815 million, seasonally adjusted) was registered in August.
Spain’s Unemployment Change data showed an increase of 25,600 in September, more than double of the median forecast. The August figure was unchanged, according to the Spanish Employment Ministry.
In the United Kingdom, Construction PMI slid slightly in September after climbing to its highest level in almost six years back in August. The index posted 58.9 after advancing for six straight months.
The European Central Bank just announced that they are holding the Minimum Bid Rate at 0.50 percent.
Later, we will witness the release of the US ADP Non-Farm Employment Change. FOMC Member Eric Rosengren is expected to give a speech at lunch time and this will be followed shortly by a speech from Fed Chairman Bernanke.
Gold saw a decline of more than $50 yesterday after bulls failed to prop up price considerably in a span of 1 week. Gold crashed through $1,290 for the first time since early August and price had a weak follow-through to $1,277 today before a minor bounce was seen. Price remains below $1,300 so bulls are not out of the woods yet.
Oil pretty much mirrored Monday’s price action yesterday and as expected attacked $101 again but it failed to break through for the second time. Little activity is seen so far today and price remains below the $102 level. There are lots of wood to chop around $102-$104, so bulls should start early!