Fundamental News: October 29, 2013
The US session kicked off yesterday with the release of US Capacity Utilization Rate. The Federal Reserve declared that the rate improved to 78.3 percent in September, following a 77.9 percent reading in August. The Fed also reported that Industrial Production improved slightly and rose 0.6 percent in September, its second consecutive monthly advance. On the other hand, Pending Home Sales continued to decline for the fourth straight month in September (-5.6 percent). This was the weakest reading in the last four months.
Today, the Statistics Bureau in Japan reported that Household Spending rose 3.7 percent in September, much better than the 0.7 percent forecast. This comes after three previous declines in the prior four months. Retail Sales also improved with an advance of 3.1 percent compared to a 1.9 percent expectation.
In the United Kingdom, Net Lending to Individuals surprised with a GBP1.4 billion reading. This was lower than the median forecast of GBP2.5 billion and the prior month’s GBP1.7 billion reading. Meanwhile, Mortgage Approvals improved to the strongest level since February 2008 at 67,000.
Soon, the market will await the release of Canada’s Industrial Product Price Index and Raw Materials Price Index; US Retail Sales, PPI, S&P/Case-Shiller Composite-20 House Price Index, and CB Consumer Confidence.
Gold managed to reach a $1,361 high yesterday, but sellers stepped in as they have noticed weakness in the past few days. Selling momentum resumed today as buyers were not able to hold price around $1,350. Next stop is the $1,300 level.
Oil is now on a three-day upside roll and many are anxious to see if bulls can preserve the momentum by their side. They surely need to work harder as there is possibility that a lot of bears are waiting around the $100 level. Bulls must find a way to get through a thick resistance area from that point forward.