Market Comment |
Australia |
| The S&P/ASX 200 index fell 0.42% or 23.925pts to 5673.98 (day range: 5700.6 – 5640) on Wednesday. The index is above its 20d MA (@ 5619) and above its 50d MA (@ 5592). 67% of the index constituents are above their 20D MA (vs 66% the previous session) and 57% of the shares are above their 50D MA (vs 55%).
The Australian Industry Group Australian Performance of Services Index (Australian PSI) gained 2.9 points MoM to 54.1 in July, the highest level since February 2014. Key findings included: “The retail trade sub-sector expanded for a fifth month (up 1.8 points to 53.8), while wholesale trade (up 2.0 points to 50.4) expanded for the first time since November 2011. (…) The finance & insurance sub-sector added a seventh month of expansion (down 4.0 points to 65.0), while property & business services (up 9.6 points to 54.5) ended nine months of contraction. (…) All other sub-sectors contracted: health & community services (unchanged at 46.7 points); personal & recreation services (down 6.2 points to 46.5); communications (down 3.1 points to 38.9); and transport & storage (up 1 point to 39.1). Hospitality (up 7.3 points to 45.8) slowed its pace of decline.” |
Foreign Exchange |
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| The US dollar was mixed against its major counterparts on Wednesday. On the US economic data front, MBA Mortgage Applications rose 4.7% last week from an increase of 0.8% in the week prior. ADP says the US added 185K new jobs in July compared to a revised 229K increase in June. US Trade balance widened to (-43.8B) in June from a revised (-40.90B) in May. The ISM Non-Manufacturing index rose the highest in a decade to 60.3 in July from 56 in June.
The Euro was higher against its major pairs except for the British Pound. In Europe, euro zone PMI composite was up to 53.9 in July in final estimation vs 53.7 in prior one. It was 54.2 the month earlier. UK PMI composite fell to 56.6 in July vs 57.4 in June and 56.9 expected. The Australian dollar was under pressure against all of its major counterparts. |
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