Morning Comments 6/20/2013
Thursday, June 20, 2013, 8:16 amSubmitted by: Kyle Lehman
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Markets are sharply lower this morning after global economic data came out bearish. The Chinese PMI (purchasing managers index) is at a nine month low providing some fear in the market their economy isn’t growing as quickly as previous months. This has the dollar stronger (bearish for commodities), crude over a dollar lower (bearish commodities), and gold $70 lower (bearish commodities). Initial jobless claims came out at 354,000 this week 18K higher than expectations. Yesterday the market saw a boost from the Fed announcing it will continue to purchase govt bonds to help stimulate the economy and lower unemployment to below 6.5%, they will start to back off the amount purchased later this year with hopes of ending bond purchasing mid next year.
Weather is somewhat a nonevent with warm dry conditions expected to last into July. Above normal temps will help the late crop attempt to catch up in terms of growth but the market will watch extended forecast to see if this weather pattern extends to pollination.
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