Asian exchanges are trading on a mixed note this morning on the back of positive economic data from the US in yesterday’s trade supported an upside in the markets. While on the other hand, decline in energy and technology stocks and tensions in Iraq exerted downside pressure on the markets. European shares closed down on Monday, as euro zone data disappointed and turmoil in Iraq continued. U.S. stocks ended little changed on Monday, with the Dow Jones halting its longest win streak this year. Asian stocks were mixed on Tuesday following a lackluster lead from Wall Street and as traders monitored developments in Iraq and Ukraine. Markets were rather lackluster on Monday and this morning as traders ignored data and remain focused on the situation in Iraq.
U.S. Treasury Secretary Jacob J. Lew will announce expanded programs to help struggling mortgage borrowers on June 26, marking the fifth anniversary of government efforts to aid the real-estate market. Americans snapped up previously owned homes in May in the biggest monthly sales gain in almost three years, a sign the residential real estate market is regaining its footing after a stumble early in the year. The US economy is making a full steam recovery; the only lagging sector has been the housing market, which could have been due to the harsh winter. The new data releases seem to support a turnaround in housing.
The US Dollar has been trading in a tight range barely responding to the stronger than expected data. The dollar index is hugging the 80.35-80.40 range trading this morning at 80.37. The euro is in the red at 1.3596 after disappointing PMI data releases. The euro should have tumbled in response but hardly moved. Eurozone business activity slipped for the second month running in June, suggesting a modest recovery could be stalling, a closely watched survey showed on Monday.
Markit Economics said its Eurozone Composite Purchasing Managers Index, a leading indicator of overall economic activity, slipped to 52.8 points from 53.5 in May, its weakest level since December. The data showed that growth remained robust in Germany, despite weakening slightly, but that the downturn deepened in France, the country increasingly generating the most worry in the currency bloc.
The pound gave back a bit of its gains this morning to trade at 1.7025 as traders watch for signs from the Bank of England. The news that the latest survey from the Bank of England shows that UK mortgage lenders expect the number of mortgage offers sent out to dip during coming months means that the outlook for GBP is flat. The pound was about 0.2 percent from the strongest level since 2008BOE Governor Carney will speak today at a hearing of Parliament’s Treasury Committee on the central bank’s May Inflation Report. Carney said this month rising mortgage debt may threaten Britain’s recovery and signaled interest rates may start to rise earlier than anticipated.