Gold futures rose following Japanese order
Gold posted gains in Asian trade on Wednesday, as investors follow the trend overnight in response to new expectations of a Fed rate hike this year and the resulting data were better than expected on machinery orders from Japan.
On the Comex division of the New York Mercantile Exchange, gold for December delivery rose 0.52% to $ 1,353.65. Silver futures for September delivery rose 0.89% to $ 20.027 per troy ounce, while copper for September delivery rose 0.19% to $ 2.156 per pound.
In Japan, core machinery orders jumped 8.3%, well above the 3.1% gain seen in the months and posted a decline of 0.9% year-on-year, better than the 4.2% fall seen. As well as PPI figures showed a decrease by 3.9%, a tad below the 4.0% decline seen year-on-year.
Overnight, gold ticked up in quiet trade, as equities around the world reached the highest level in nearly a year drown out the precious metal’s appeal as a safe-haven assets as investors engaged in a search for higher dividends amid a chaos kept bond yields global.
Driven by gains among shares of Health and Technology on Tuesday, the NASDAQ Composite Index and the S & P 500 Composite ticked higher to reach a fresh all-time intraday highs.
During the last six weeks, the NASDAQ has staged a rebound improbable rally driven by 23% in iShares ETF IBB Biotechnology. The S & P 500, meanwhile, have lingered in record territory throughout the summer in the area of risk on the trade, while the government-bond yields hover near record lows.
Across the pond, the Stoxx 600 index ticked up 0.4%, while Britain’s FTSE 100 rose 0.62% to 6,851.30, as the U.K. starting fresh easing measures approved by the Bank of England (BOE) last week. As a result, the MSCI All-Country World Index jumped 0.5% to reach its highest level since last August.
The day after the BOE cut its benchmark rate to a record low of 0.25%, the yield on the UK 10 year slipped below 0.6% on Tuesday for the first time on record. While the spread between the US 10-year and 10-year-U.K. Gilts remained near all-time highs, US Treasuries result is still below 1.60%, down more than 60 basis points over the last year. By comparison, the S & P 500 dividend yield of 2.04% on Tuesday, providing market participants with incentives to invest in equities and government bonds have traditionally been more secure.
Meanwhile, the prospect of the installation of a rate hike by the Federal Reserve in 2016 continued to weigh on gold. CME Group (NASDAQ: NASDAQ: CME) tool Fed Watch placed the possibility of a rate hike in December around 50%, far above the possibilities are around 30% before the US jobs report last week strong. CME Group has also increased the possibility of a rate hike from September to about 20%, up from 10% last week.
Technically
Resistance: 1349.82 1350.67 1353.68 High / Low: 1348.75 / 1330.10
Support: 1346.56 1345.38 1342.12 Running Price: 1347.92
Comment: For intraday trade today suggest Sell at 1345.73; stop loss at 1346.93; targets at 1343.73.
Aussie dollar rose in trading
The Aussie dollar was observed to make a profit on Wednesday in Asian trading while the yen weakened, with increases recorded upbeat machinery orders in Japan and accompanied by consumer sentiment in Australia.
USD / JPY was changing hands at 101.33, down 0.54%, while the AUD / USD was trading at 0.7691, up 0.25%.
In Japan, core machinery orders jumped 8.3%, well above the 3.1% gain seen in the months and posted a decline of 0.9% year-on-year, better than the 4.2% fall seen. As well as PPI figures showed a decrease by 3.9%, a tad below the 4.0% decline seen year-on-year.
In Australia, Westpac consumer sentiment index rose 2.0%, rebounding from a decline of 3.0% in the previous month.
Also in Australia, home loans for June rose 1.2%, below the 2.4% gain expected in the months and invest in housing finance for June rose 3.2%, below the 3.9% rise in the previous month. Later in the day, the Reserve Bank of Australia Governor Glenn Stevens speaks.
The US dollar index, which measures the strength of the dollar-weighted of six major currencies, fell 0.36% to 95.71.
Overnight, the dollar moved lower against other major currencies on Tuesday, but remained supported by strong US jobs report Friday as investors turn their attention to US retail sales data Friday for further indications on the strength of the economy.
Greenback remained broadly supported after upbeat US nonfarm payrolls report Friday boosted expectations for a rate hike by the Federal Reserve before the end of the year.
Earlier Tuesday, preliminary data showed that US non-farm productivity fell 0.5% in the second quarter, disappointing expectations for a 0.4% gain, after a slip of 0.6% in the three months to March.
Technically
Resistance: 0.7689 0.7693 0.7707 High / Low: 0.7706 / 0.7620
Support: 0.7684 0.7660 0.7657 Running Price: 0.7687
Comment: For intraday trade today suggest Sell at 0.7680; stop loss at 0.7692; target at 0.7660.
Wallstreet Stock gained on trade
US stock market observed profit on Wednesday when the NASDAQ Composite Index and the S & P 500 is down slightly from intraday highs label, along with the decline in oil stocks offset a slight gain in the Healthcare and Technology sectors.
The Dow Jones Industrial Average rose 3.76, or 0.02% to 18,533.05, while the NASDAQ added 12.34 or 0.24% to 5,225.48, as the recent pattern of sideways, range-bound trading on Wall Street last. In-session highs, the NASDAQ peaked at 5,238.54, hitting all-time intraday high for the second time in three sessions. The S & P 500 composite index, meanwhile, also rose to a new intra-session high of 2,187.66, before falling back to 2,181.74, up 0.85 or 0.04% on the day. On the S & P 500, six of the 10 sectors closed in the green for shares in the Technology, Healthcare and Telecommunications sector led.
During the two-and-a-half weeks ago, the S & P 500 added 0.25%, which reflects the current “wait-and-watch,” mentality among traders. Consequently, the CBOE Volatility Index VIX fell as low as 11.03 on Tuesday, sliding to its lowest level this year. Since the beginning of February, the VIX has fallen about 55%.
Top performer in the Dow was Walt Disney Company (NYSE: DIS), which rose 1.03, or 1.07%, to 96.78, ahead of the release of second-quarter earnings on Tuesday after the bell. Disney shares fell about 14% over the last year since CEO Bob Iger shook investors during the second quarter conference call last summer with the ringing alarm bells in the future growth potential ESPN. Iger could soothe jittery investors on Tuesday night in the belief that the broad initiative of cable-cutting in the industry can be overcome. The worst performer is the American Express Company (NYSE: AXP), which fell 1.03, or 1.07%, to 96.78. Shares of American Express (NYSE: AXP) was relatively flat during the last few weeks since the credit card giant officially severed ties with the US wholesaler Costco Wholesale Corporation (NASDAQ: COST) earlier this summer.
NASDAQ is the biggest winner in Liberty Ventures (NASDAQ: LVNTA), which added 1.32 or 3.59 or 37.96. Shares of Liberty Interactive (NASDAQ: QVCA), the parent company of home shopping network QVC, continued to rally after falling more than 20% in a session last Friday when CEO Greg Maffei warned that the company may enter “choppy retail environment.” The worst performer was the Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH), which dropped 4.97, or 11.57%, to 37.99, after the international cruise lines slashed profit projections for the remainder of this year and 2017. It came amid more demand outlook soft in the US and the euro area, as well as growing fears of the British pound weakened.
On the S & P 500, Endo International PLC (NASDAQ: ENDP) finished as the top performer after soaring 3.97 or 21.80% to close at 22.16. Previously, the specialty pharmaceutical company posted better than expected second quarter results, driven by 67% in net sales of US generic business following the acquisition last September of Par Pharmaceutical. The worst player is Scripps Networks Interactive Inc. (NASDAQ: SNI), which fell 4.74, or 7.16% to 61.43.
On the New York Stock Exchange, advancing issues outnumbered declining by a margin of 1.585 to 1.352.
Technically
Resistance: 18467 18474 18 482 High / Low: 18521/18441
Support: 18454 18439 18 427 Running Price: 18456
Comment: For intraday trade today suggest Buy at 18 464; stop loss at 18 664; target at 18 144.
