US indices closed slightly positive on Monday after erasing morning losses and posting a reversal day. Shares in the Software & Services (+1.08%), Semiconductors & Semiconductor Equipment (+0.86%) and Banks (+0.84%) sectors helped push U.S. indices higher while the Energy (-1.55%) sector was under pressure. On the economic data front, the Markit manufacturing PMI increased to 55.4 in a final estimate in June (estimated 54.6) from 56.4 previously. In addition, construction spending MoM increased by 0.4% in May (expected +0.5%) from 0.9% in April. Finally, the ISM manufacturing index increased to 60.2 in June (anticipated 58.5) from 58.7 in the prior month. The S&P 500 (2,726.71) is still below its 20d moving average (2,754.33 – negative) but remains above 50d moving average (2,718.60 – positive).
Economic Calendar: 02.07.18
08:50 FR JUN F Markit Manufacturing PMI exp: 53.1 prev: 53.1
09:00 EU JUN F Markit Manufacturing exp: 55 prev: 55
10:00 EC MAY Euro-Zone: PPI (MoM) exp: 0.4% prev: 0%
10:00 EC MAY Euro-Zone: Unemployment Rate exp: 8.5% prev: 8.5%
14:45 US JUN F Markit Manufacturing PMI exp: NA prev: 54.6
15:00 US JUN ISM – Manufacturing exp: 58.5 prev: 58.7
15:00 US JUN ISM – Price Paid exp: NA prev: 79.5
15:00 US MAY Construction Spending (MoM) exp: 0.4% prev: 1.8%
General Market Comment: 29.06.18
General Market Comment
US indices closed higher on Friday lifted by shares in the Consumer Durables & Apparel (+3.75%), Energy (+0.65%) and Pharmaceuticals, Biotechnology & Life Sciences (+0.6%) sectors. On the economic data front, personal income increased by 0.4% in May, meeting the estimate, from +0.2% in the prior month while personal spending increased by 0.2% in May, below the estimate of +0.4%, from +0.5% previously. In addition, the Chicago business barometer index increased to 64.1 in June (expected 60) from 62.7 in the previous month. Finally, the University of Michigan consumer sentiment index increased to 98.2 in June (anticipated 99) from 98 in May. The S&P 500 (2,718.37) is still below its 20d moving average (2,755.34 – flat) but breaks above 50d moving average (2,717.47 – flat). European markets are expected to open on a negative note.