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Asia, Europe Up On Monetary Easing Hopes; US Flat On Factory Order Data
International
Asia
● Asian stock indexes rose as investors speculated that central banks would conduct monetary easing.
● The Nikkei rose 0.70 percent; Korea’s KOSPI advanced 0.87 percent; the Shanghai Composite inched up 0.14 percent; the Hang Seng soared 1.54 percent.
● China’s services PMI reading in June rose to 56.7 from 55.2 in May, showing that the growth-intensive services sector has not been hurt by crisis in Europe. Check for movements in the iShares FTSE/Xinhua China 25 Index Fund (NYSEArca: FXI)
● Australia’s central bank decided to leave its interest rate unchanged at 3.50 percent due to improved employment and a stronger currency that keeps inflation in check. Look for activity in the iShares Australia MSCI Index Fund (NYSEArca: EWA).
Europe
● European stock indexes rose on expectation that central banks would ease monetary policy and that U.S. factory order data would show stability. Expect changes in the SPDR Euro Stoxx 50 ETF (NYSEArca: FEZ).
● Bob Diamond, the chief executive of the U.K.-based bank Barclays Plc resigned today after the bank acknowledged that it rigged global interest rates.
Domestic
● U.S. stock futures indicated a flat opening due to expectation of a slight increase in factory orders for May. Specifically, economists estimate that factory orders will increase by 0.1 percent in May.
Commodities
All commodities news is as of 6:55 a.m. ET.
Gold and Silver Advanced
● Gold increased 0.75 percent, or $12, to $1,609.10. Expect growth in the SPDR Gold Shares physical bullion ETF (NYSEArca: GLD).
● Silver gained 1.6 percent, or $0.44, to $27.93. Expect an increase in the iShares Silver Trust (NYSEArca: SLV).
WTI and Brent Oil Soared
● The August contract for WTI crude oil advanced 2.01 percent, or $1.68, to $85.42 per barrel.
● The August contract for Brent crude oil rose 2 percent, or $1.95, to $99.30 per barrel.
● Expect high strong movement in both the United States Oil Fund (NYSEArca: USO) and in the United States Brent Oil Fund (NYSEArca: BNO).
Fund Flows
On Monday, July 2, 2012, the top ETF in nominal inflows was the SPDR S&P 500 (NYSEArca: SPY), with creations of $3.65 billion. The top ETF in nominal outflows was the iShares Barclays 1-3 Year Treasury Bond (NYSEArca: SHY), with redemptions of $270.0 million.
ETF Launches
None as of yet today.
ETF Filings
None as of yet today.
Economic Calendar
Domestic
● Motor Vehicle Sales
● ICSC-Goldman Store Sales - 7:45 a.m. ET
● Redbook - 8:55 a.m. ET
● Factory Orders - 10:00 a.m. ET
● Markets close at 2 p.m. ET
Europe
● EMU
○ PPI - 5:00 a.m. ET
● UK
○ M4 Money Supply - 4:30 a.m. ET
Asia/Pacific
● Australia
○ RBA Announcement - 12:30 a.m. ET
○ Retail Sales - 9:30 p.m. ET
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