Market Review June 28 2012
US stocks were little changed as investors awaited reports on durable-goods orders and housing to assess the strength of the economy before an EU summit that starts today. The S&P 500 advanced yesterday as optimism about the housing market tempered concern that the Euro debt crisis will worsen. The climb trimmed the equity benchmark’s decline this quarter to 6.3%, its first quarterly slump since September.
Campaign season has been rough on Wall Street, with President Obama demonizing Bain Capital Partners LLC when challenger Mitt Romney was its leader.
European stocks rose, snapping four days of losses, amid speculation China will introduce additional economic stimulus.
UK stocks increased for the first time in five days as banks and Shire Plc rebounded before tomorrow’s European Union summit in Brussels.
Back in 2000, European Union leaders promised to create a common patent system by the end of 2001 — a deadline pushed back so often that a summit starting tomorrow is poised to set another one.
China’s stocks fell for a sixth day, the longest losing streak in six months, after Daiwa Securities Group Inc. cut its second quarter growth estimate for the world’s second-biggest economy.
Japan’s Prime Minister Yoshihiko Noda risks stalling the economy by pushing through a higher sales tax that may damp consumption even as it aids efforts to tame Japan’s debt.
EURUSD (1.250) have remained calm and quiet leading up the EU Summit. The markets expect a great deal of news flow, political and personal agenda press coverage along with EU Ministers competing to see who can get the most press. I hear they wagered a billion euros this year.
The Great British Pound
GBPUSD (1.5594) Sterling is just floating moving about on the strength of the USD as most markets are today, investors moved out to a bit more risk after positive US data yesterday.
Asian –Pacific Currency
USDJPY (79.45) remains in a tight range, as risk aversion remains the theme. Japanese retail sales soared today well above forecast. But markets are largely ignoring eco data, and waiting for the circus in the EU.
Gold (1572.55) continues to lose ground and investors sparkle drifting slightly downwards but remaining close to the 1570 price. With no supporting data and quiet markets gold should continue to drift.
Crude Oil (80.44) got a bit of a push yesterday, when EIA inventories reported a drop in stocks, although the drop was less then market forecast it was enough to give the commodity a small pop. The official Iranian embargo goes into effect July 1, 2012 and the Iranian’s have been too quiet as of late. What’s with that, no rhetoric ?
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