U.S. indices closed higher on Monday with the S&P500 posting a record high lifted by shares in the Semiconductors & Semiconductor Equipment (+2.13%), Technology Hardware & Equipment (+1.49%) and Insurance (+1.32%) sectors. On the economic data front, construction spending fell 0.8% MoM in May (expected to be flat). The ISM Manufacturing PMI dropped to 50.6 in June (vs. 51.0 expected) from 52.1 in May. Also, the final readings of June Markit U.S. Manufacturing PMI posted 50.6 (vs. 50.1 previously estimated). The S&P 500 (2,964.33) stays above its 20d moving average (2,901.16 – positive slope) and its 50d moving average (2,881.90 – positive slope).
European markets are expected to start on a flat note.<\/p>\n\n\n\n
Foreign Exchange<\/strong><\/p>\n\n\n\n The US dollar was bullish against all its major pairs on Monday. On the economic data front, Markit US Manufacturing PMI decreased to 50.6 in June in final estimation (estimated 50.1) from 50.1 in the prior month. Construction spending decreased by 0.8% MoM in May (estimated 0%) compared with 0.4% growth in the previous month. ISM Manufacturing decreased to 50.6 in June (estimated 51) vs. 52.1 in the previous month. Lastly, ISM Prices paid fell to 47.9 in June (estimated 53) vs. 53.2 in the prior month.
The Euro was bearish against all of its major pairs with the exception of the AUD and CHF. In Europe, the euro zone PMI manufacturing index was 47.6 in June in final estimation vs 47.8 in first one and 47.8 a month earlier. Separately, the unemployment rate fell to 7.5% in May, the lowest since July 2008, from 7.5% in April. The German unemployment rate was flat at 5% in June, as anticipated. The UK PMI manufacturing index fell to 48 in June from 49.4 in May. It was expected to be 49.5.
The Australian dollar was bearish against all of its major pairs with the exception of the CHF.<\/p>\n\n\n\n