US indices closed higher on Thursday lifted by shares in the Semiconductors & Semiconductor Equipment (+2.64%), Household & Personal Products (+1.73%), Food, Beverage & Tobacco (+1.56%) sectors. On the economic data front, the ADP national employment report showed U.S. companies added 177K jobs in June (estimated +190K) from +189K in the prior month. Initial jobless claims increased to 231K on June 30 (expected 225K) from 228K previously while continuing claims increased to 1.74M on June 23, below the estimate of 1.72M, from 1.71M in the prior period. Furthermore, the Bloomberg consumer comfort index increased to 57.6 in the week ending June 1 from 57.3 in the past week. Also, the Markit service PMI increased to 56.5 in June, meeting the estimate, from 56.8 in May. Finally, the FOMC released the minutes on the June 13th meeting in which participants “noted that uncertainty and risks associated with trade policy had intensified and were concerned that such uncertainty and risks eventually could have negative effects on business sentiment and investment spending”. Some participants also raised the concern that “a prolonged period in which the economy operated beyond potential could give rise to heightened inflationary pressures or to financial imbalances that could lead eventually to a significant economic downturn”. The S&P 500 (2,736.61) breaks above its 20d moving average (2,750.77 – negative slope) but stays above 50d moving average (2,721.50 – positive slope). European markets are expected to start on a flat note. read more
