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Current Futures: Dow -5.00, S&P -1.20, NASDAQ -2.75
The U.S. equity market appeared again reluctant to break above the range of the last few days of trading, while Asian markets advanced following the retail sales report from Thursday.
Both the S&P 500 and the Dow Jones indexes posted relative modest gains on Thursday, even though the two indexes advanced more than 1.50% during the intra-day trading hours. With Thursday’s close, the S&P 500 has been trading in a 30-point range for the last 10 days, something that makes investors believe a retrace is needed in order for the index to move higher, TheLFB-Forex.com Trade Team noted. The 10-year U.S. Treasury notes closed the trading session yielding 3.85%, after it touched 4% on Wednesday, the highest level of the current year.
Companies with exposure to the U.S. consumer market advanced during the Asian trading hours, after a release pointed that U.S. retail sales increased more than expected in May, being the first positive read in the last three months. As such, electronic-makers and car-companies were among the top-gainers in Asia, together with the same commodity stocks that pulled the major indexes higher over the last period of trading. Retail sales picking up are another sign that the pace of contraction is easing up in the global economy, something that further fuels the rally in the commodity market, TheLFB-Forex.com Trade Team said. Metals rose 4% on Thursday, while crude oil broke briefly above the $73.00 benchmark level, the highest level reached since October 2008.
Overnight, the Japanese Nikkei rose 94.01 points (0.94%) to 10,075.34. The Australian S&P/Asx gained 24.60 points (0.61%) to 4,071.80. The S&P 500 index gained 5.74 points (0.61%) to 944.89, while the Dow Jones index added 31.90 (0.37%) to 8,770.92
Crude oil for July delivery was recently trading at $72.40 per barrel, lower by $0.20.
Gold for July delivery was recently trading lower by $3.40 to $958.60.
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