US DATA: Services PMI Confirmed At Highest In Over Two Years
Jul-03 13:52
- Services PMI was revised a little higher to 55.3 in the final June release (prelim and cons 55.1) after 54.8 in May.
- It’s a fresh high since Apr’22 and the press release (full here) points to the improved business outlook but the upcoming ISM services report at 1000ET will likely set the tone.
- “Growth momentum improved in the US service sector in June, with firms seeing sharper increases in both business activity and new orders. Companies responded to growth of new business by increasing workforce numbers for the first time in three months, but backlogs of work built up nonetheless.”
- “Rates of increase in both input costs and output prices eased in June, but in each case remained above pre-pandemic averages. Higher labor costs were central to price rises.”
- The composite PMI subsequently increased to 54.8 (prelim 54.6) after 54.5 in May.
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BOE APF SALES RESULTS: GBP750mln of medium-dated gilts with bid-to-cover of 3.10x
Jun-03 13:49
Previous bid-to-cover ratios: most recent first: 3.06x, 2.31x, 2.09x, 1.96x.
US DATA: US S&P Manufacturing PMI Revised 0.4 points higher to 51.3
Jun-03 13:49
- Key Excerpts On Employment and Inflation• Ahead of Friday's payrolls report (although mfg is only a small share of employment): “Employment increased for the fifth consecutive month, and at the fastest pace since July 2023. Alongside positive expectations, higher staffing levels also reflected the filling of previously vacant positions.”
- On prices: “The rate of input cost inflation continued to accelerate, quickening for the third consecutive month to the fastest since April 2023. The latest increase was also sharper than the pre-pandemic average. Higher costs for aluminium and copper in particular, and metals more generally, were reported, as were increased fuel costs feeding through to rising transportation prices. With input costs increasing sharply, firms also registered a rise in selling prices, although here the pace of inflation eased from April to a five-month low.”
- Full press release here.
EQUITY TECHS: E-MINI S&P TECHS: (M4) Remains ABove Friday’s Low
Jun-03 13:47
- RES 4: 5417.75 2.00 proj of the Apr 19 - 29 - May 2 price swing
- RES 3: 5400.00 Round number resistance
- RES 2: 5372.73 1.764 proj of the Apr 19 - 29 - May 2 price swing
- RES 1: 5265.72/5368.25 High May 23 and bull trigger / 20-day EMA
- PRICE: 5308.50 @ 14:36 BST Jun 3
- SUP 1: 5205.50 LOw May 31
- SUP 2: 5155.75 Low May 6
- SUP 3: 5099.25 Low May 3
- SUP 4: 5036.25 Low May 2
The uptrend in S&P E-Minis remains intact, however, a corrective cycle has resulted in a pullback from the recent high of 5368.25 (May 23). The latest move down resulted in a print below support at the 50-day EMA, at 5213.24 A clear break of this EMA would signal scope for a deeper retracement. The recovery from Friday’s low is a positive development, a continuation would open 5368.25 and a breach of this level resumes the trend.
