Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
Main Trading Event Of The Day: U.S. ISM Non-Manufacturing PMI @ 14.00 GMT
WHAT WE’RE WATCHING TODAY
ISM Non-Manufacturing PMI: U.S. Firms Expected To Show Continued Growth
U.S. service-sector surveys have improved since last month, indicating a higher pace of growth in services activity. The ISM non-manufacturing index set to be released today is projected to climb in July to 56.5% from 56% will not come as much of a surprise as the index has hovered between a range of 52% to 57% in every month except for one since March 2010. Any number above 50% means a majority of companies are experiencing faster growth, with numbers above 55% being particularly strong. Given the stable readings of the headline number, investors should pay close attention to the part of the ISM report that gauges hiring intentions and employment levels. The employment index stood at 54.4 in June, the highest rate since January and it could go higher still given the upturn in U.S. hiring since the spring. That would be a sign that companies plan to continue to add workers at a brisk pace.
U.S. Non-Manufacturing PMI @14.00 GMT
Dollar Steady Near Highs As Rally Pauses
The U.S. dollar lingered below a 10-1/2 month peak against a basket of major currencies early today, having lapsed into uneventful trade in the post NFP data lull. The dollar index stood at 81.320 with little movement on Monday. This followed a 0.2 percent fall on Friday - the biggest one-day decline in over three weeks after the payrolls report disappointed some dollar bulls. In the absence of any major economic data and ahead of policy reviews by central banks in Australia, Japan and Europe, traders said it was not surprising to see financial markets take on a more subdued tone. The euro, meanwhile, was in familiar territory at $1.3421, having drifted in a $1.3409-$1.3433 range on Monday. It remained just off an eight-month trough of $1.3366 plumbed last week.
Gold Below $1,300 On Strong Dollar
Gold held steady below $1,300 an ounce today, even though a strong dollar and the first outflow in more than a week from the world’s top bullion fund weighed on sentiment. Gold has recently been tarnished by U.S. economic data as a strong recovery may prompt the Federal Reserve to raise interest rates, diminishing the appeal of non-interest bearing assets such as bullion. Spot gold was little changed at $1,288.84 an ounce today after slipping 0.4 percent in the previous session. U.S. gold was up $1 at $1,289.90. In a measure of investor sentiment, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported that its holdings fell 1.79 tons to 800.05 tons on Monday, the first drop since July 24. Gold failed to receive strong safe-haven bids as Israel and the Islamist Hamas movement have agreed to an Egyptian-proposed ceasefire to end fighting in the Gaza Strip.
That sums up today’s highlights! Remember to check into our social media platforms for all the latest trading news and updates. We hope you have a profitable day on the markets.
