U.S. indices closed at record highs on Wednesday in a shortened trading session lifted by shares in the Household & Personal Products (+2.01%), Real Estate (+1.47%) and Consumer Durables & Apparel (+1.28%) sectors. On the economic data front, ADP private jobs increased 102,000 in June (vs. +140,000 expected, +41,000 in May). Trade deficit widened to $55.5B in May (estimated $54.0B) from 51.2B deficit in April. The final readings of June Market Services PMI posted 51.5 in June (vs. 50.7 previously). The ISM Non-Manfacturing PMI dropped to 55.1 in June (vs. 56.0 expected) from 56.9 in May. Lastly, Factory orders declined 0.7% MoM in May (vs. -0.6% expected). The S&P 500 (2,995.82) stays above its 20d moving average (2,918.13 – positive slope) and its 50d moving average (2,884.44 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all its major pairs on Wednesday except the GBP. On the economic data front, ADP Employment changed by 102K in June (estimated 140K) vs. 41K in the previous month. The Trade Balance had a deficit of $55.5B in May (estimated $54B) compared with a 51.2B deficit in the previous month. The Market Services PMI reached 51.5 in June (estimated 50.7) compared with 50.7 in the previous month. Durable Goods Orders decreased by 1.3% in May (estimated -1.3%) vs. -1.3% in the prior month. The ISM Non-Manfacturing Index reached 55.1 in June (estimated 56) vs. 56.9 in the prior month. Lastly, Factory Orders decreased by 0.7% in May (estimated -0.6%) vs a 1.2% decrease in the month before.
The Euro was bearish against all of its major pairs with the exception of the GBP. In Europe, the euro-zone PMI composite was 52.2 in final estimation vs 52.1 in first one and 52.8 a month earlier. The UK PMI composite index fell to 49.7 in June from 50.9 in May. It was anticipated to be 51.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 19) was up $1.1 to $57.34. The contract was above its 20D MA (@ $55.55) and below its 50D MA (@ $58.69). The US Department of Energy reported that, for the week ended 28 June, crude oil inventories fell 1085k barrels compared to the previous week.
Gold was about flat to $1417.5. The precious metal was above its 20D MA (@ $1374) and above its 50D MA (@ $1322). The 14d RSI above 70 (71.4) indicates gold was overbought.
Copper Future (SEP 19) on Comex was up 2c to 268.4c/lb. The contract was above its 20D MA (@ 268.12c) and below its 50D MA (@ 272.67c). In Europe, the London Metal Exchange reported its copper inventories increased 32575 tons to 272500 tons.