Dow Back Above 15,000

Asian markets kicked the week off by moving higher. This comes after weak U.S. economic data cooled fears the Fed will taper back its stimulus program in September.

The DJIA moved higher on Friday closing above 15,000 as we saw a sharp falloff in U.S. home sales. We saw sales of new single family homes hitting their lowest level in nine months. This number was off 13.4 percent to 394,000 units. It would seem as interest rates are spiking, along with mortgage rates, new home sales are declining. This could be enough to start influencing Federal Open Market Committee (FOMC) members to hold off tapering back the bond purchasing program in September.

STOCKS

The Australian benchmark rose to a one week high ending the day 7 points higher to close at 5,130.60. The Shanghai also hit a one week high closing up nearly 30 points to 2,086.49. The KOSPI hit a three day high at 1,886.82. The Nikkei closed flat.

U.S. markets advanced on Friday after poor homes data increased the probability the FOMC might wait to taper back the stimulus program. The Dow Jones rose on Friday by nearly 47 points to close at 15,010.51. The DJIA was helped by shares of Microsoft (NYSE: MSFT) which were up over seven percent on news that its CEO Steve Ballmer would retire within the year.

The S&P 500 and NASDAQ also saw moderate gains on the day up 6.54 points and 19 points respectively.

European markets were also higher to end the week as we saw better than expected growth data from the United Kingdom. The FTSE closed up over 45 points to end at 6,492.10. The German DAX was also higher and the French CAC finished flat.

CURRENCIES

The EUR/USD (1.338) looks like it is remaining ranged from 1.3300 to 1.3405 right now. We still look bullish for a move higher while above 1.3300. We could also see assets pouring into the euro form a weakening yen as the EUR/USD (132.05) looks to be moving higher. Please see the below EUR/USD chart.

The GBP/USD (1.5563) has been moving lower the last couple of trading sessions as the resistance at 1.5719 has held very well. The Sterling is trading weaker against the euro and the yen as well. We could see a test of 1.5400 at some point. The USD/JPY (98.69) continues to move higher as the dollar strengthens. It broker above 98.40 with strength and can now target 99.10 and then 99.20.

COMMODITIES

Commodities universe is higher overall.

WTI Crude (106.93) is stronger and looking to test 107.00 and then 107.90. Once above that can target 110 and higher. Gold (1396.60) is also up. We have seen a break through 1375.00 and can now test 1400. After that level we can target 1425 and higher.

Copper (3.381) is moving steadily higher and looks poised to test 3.40. However we see strong resistance lining up at 3.45 which should hold.

TODAY’S OUTLOOK

Markets today will get a small boost from the weaker housing data out of the U.S. Gold is seeing some help form increased demand out of China as is Copper.