Daily Market Update 29 July 2013 - Here begins a big week on the markets

Daily Market Update 29 July 2013 - Here begins a big week on the markets

US consumer confidence rose to the highest level in 6 years in July with the Thomson Reuters/University of Michigan survey coming in at 85.1. The reading was above the 83.9 preliminary reading released earlier in the month and the 84.1 figure of June with an improvement in expectations, up to 76.5 from 74 in the preliminary reading, helping to offset an unexpected decline in current conditions to 98.6.


German import prices slid in June with a decline of 0.8% reported. The figure was nearly three-times more than the 0.3% decline expected by economists and left the annualised contraction at 2.2%.


French consumer confidence rebounded modestly during July with INSEE reporting an increase to 82. The result beat expectations for a rise to 79 and was higher than the upwardly-revised 79 reading of June. While an improvement, overall confidence remains near the lowest levels seen since the survey began in 1972. 


The Day Ahead (All times AEST)

The ASX 200 looks set to kick off the week marginally in the black with SPI futures pointing to a gain of 8pts on the open. Given declines in most commodity markets on Friday, if gains are likely to be sustained, most of the heavy lifting will have to come from yield-based plays. While it could close either side of par, the one thing that is certain is that volumes will be down as investors continue to bide their time before bigger market-moving events later in the week.


After an uneventful session on Friday, the AUDUSD has opened the trading week slightly lower with the pair currently fetching .9250. With little in the way of market-moving events to dictate direction, the pair is likely endure a quiet session today as participants await larger market-moving events later in the week. Support starts at .9230 and again at .9210 with resistance kicking in at .9295 and .9317.


Regional data releases today include Japanese retail sales and the manufacturing BSI survey from South Korea.


Data releases this evening include pending home sales, Dallas Fed manufacturing index and Midwest manufacturing from the States, retail turnover and BoE lending figures from the UK along with business confidence and wage inflation from Italy.


Major data events in the week ahead

Tuesday: RBA Governor Glenn Stevens in Sydney.

Wednesday: US Q2 GDP, ADP Employment, FOMC rate decision for July.

Thursday: Chinese manufacturing PMI, Bank of England MPC meeting, ECB monetary policy meeting.

Friday: Australian building approvals and retail sales, US non-farm payrolls.


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