Wall Street sentiments on Monday are clearly mixed, with US500 and US100 almost flat, losing in the tight range of -0.05% to -0.1%. US dollar weakens, with USDIDX down almost -0.7%. The US ISM Manufacturing report shows rising price pressure, despite weakness across the labor and employment.
- EURUSD gains almost 0.8%; 10-year treasuries rise 1.8 bps to 4.44% but US dollar remains weak
- Surging gold price improves sentiments across the shares of gold miners which benefit from rising gold and silver prices and demand
- Donald Trump decided to lift steel tariffs from 25% to 50%; Nucor and Steel Dynamics surge almost 10%, however US Steel remains flat. Higher steel tariffs in the US may support demand for local steel, which may be sold at higher price - on the national market
- Metals & mining sector gain, while automobiles weakens. On the other hand, semiconductors are on the rising wave with Broadcom (AVGO.US) and Nvidia (NVDA.US) surging
Source: xStation5
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US ISM Manufacturing PMI (May report): 48.5 (Forecast 49.5, Previous 48.7)
- ISM Mfg. Prices Paid: 69.4 (Forecast 69.3, Previous 69.8)
- ISM Mfg. New Orders Index: 47.6 (Previous 47.2)
- US ISM Mfg. Employment Index Actual 46.8 (Previous 46.5)
US Construction Spending MoM: -0.4% (Forecast 0.2%, Previous -0.5%)
The ISM data from the US came in clearly weaker than anticipated. What's negative for markets, the prices paid component across the US industrial sector came in very high (but only slightly higher than expected).
US500 (D1 interval)
US500 gains slightly today. The most important support zone is the range of 5750 - 5800 points, where we can see key moving averages of EMA200, EMA100 and EMA50. Strong resistance zone we can find at 5950 points.
Source: xStation5
