Spreadex Market Update
Sleepy summertime afternoon leaves indices limp despite commodity improvement
The robust recovery from (some of) the mining stocks, namely Rio Tinto and Vedanta Resources (Lonmin remained as one of the day’s biggest losers as platinum languished behind the other metals) and the gradual calming on BP and Shell’s declines allowed the FTSE to start sniffing around some very minor gains as the day wore on. Tomorrow’s headline piece of data is the services PMI, with analysts expecting a fall from last month’s figure; however, with the sector showing muscular growth in last week’s GDP data Wednesday’s number could have the capacity to surprise.
The Eurozone (really, really slowly) edged towards a greenish flatness as Tuesday continued. There was little to inspire much growth in the region as the day went on, with the news that Greece is hoping to have a third bailout signed, sealed and delivered by August 18th barely causing a blip on the day’s trading. Perhaps Eurozone investors have become inured to the kind of dispatches that caused such wild market swings throughout June; or, perhaps, they are just all on holiday.
As expected, and pretty strong, US factory orders failed to do much for either the Dow or the dollar, with the former posting the mildest of gains whilst the latter couldn’t really advance on the euro or pound. Tomorrow, fingers crossed, will be a bit livelier, with the ISM non-manufacturing PMI, the trade balance data and, most crucially, the ADP non-farm figure for investors’ delectation. That final figure is forecast to come in at 216k to last month’s 237k, but comes with the caveat of being a rather useless barometer for the government released non-farm number at the end of the week.
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