Sunday, 2 June 2013

MARKET COMMENTS

June E-mini S&Ps (ESM13 -0.48%) this morning are down -7.75 points (-0.47%). The S&P 500 index on Thursday closed higher despite weaker-than-expected U.S. economic data. U.S. Q1 GDP was revised slightly lower to +2.4% from +2.5%, weekly jobless claims rose +10,0000 to 354,0000, vs. expectations of unchanged at 340,000, and Apr pending home sales rose +0.3% m/m vs. expectations of +1.5% m/m. However, stocks found support from expectations that any weak economic data will keep the Fed from trimming its QE3 program. Closes: S&P 500 +0.37%, Dow Jones +0.14%, Nasdaq 100 +0.57%.
June 10-year T-notes (ZNM13 +0.25%) this morning are up +9.5 ticks. June 10-year T-note futures prices on Thursday settled slightly higher. T-notes found support on the weaker-than-expected U.S. economic data, which boosted speculation the Fed will maintain its QE3 and zero-rate stimulus measures. Bearish factors included (1) strong stocks, which cut the safe-haven demand for Treasuries, and (2) supply pressures as the Treasury sold $29 billion of 7-year T-notes. Closes: TYM3 +0.5, FVM3 +0.50.
The dollar index (DXY00 +0.24%) this morning is up +0.207 (+0.25%). EUR/USD (^EURUSD) is down -0.0057 (-0.44%) and USD/JPY (^USDJPY) is down -0.24 (-0.24%). The dollar index on Thursday fell to a 2-week low and closed lower. Weaker-than-expected U.S. economic data (Q1 GDP, weekly jobless claims and Apr pending home sales) increased speculation the Fed will maintain its dollar-negative stimulus measures. Closes: Dollar index -0.561 (-0.67%), EUR/USD +0.0109 (+0.84%), USD/JPY -0.429 (-0.42%).

July WTI crude oil (CLN13 -0.73%) this morning is down -46 cents a barrel (-0.49%) and July gasoline (RBN13 -0.29%) is down -0.0074 (-0.26%). July crude oil and gasoline on Thursday shook off early losses and closed higher. Bullish factors included (1) the weaker dollar, (2) the larger-than-expected decline in weekly EIA gasoline inventories (-1.514 mln bbl vs. expectations of a -500,000 bbl draw), and (3) speculation that recent weaker-than-expected U.S. economic data will prompt the Fed to maintain its QE measures. Bearish factors included (1) the unexpected downward revision to U.S. Q1 GDP, and (2) the unexpected surge in weekly EIA crude inventories (+3.0 million bbl vs. a -500,000 bbl draw) to 397.6 million bbl, the highest level since 1931. Closes: CLN3 +0.48 (+0.52%), RBN3 +0.0094 (+0.34%).

No comments:

Post a Comment