- JCI severely hit throughout the week. The Fed's stimulus reduction issue remained the major negative catalyst for the index as the market seemed to be starting to factor in the end of accomodative monetary policy period in the U.S. This has been reinforced by the statement from the European Central Bank that they are seeing gradual recovery in the Eurozone economy this year and thus dashed the hope for more monetary stimulus in Eurozone. Further, ECB's Draghi said to be putting rate cut option on the shelf for now.
- US nonfarm payrolls were up by 175k in May, better than the expected 163k and more than 149k which were added in April. The unemployment rate ticked up to 7.6% however, worse than the consensus which forecast it to be steady at 7.5%. Despite its increase, the market responded positively as some analysts forecast that the Fed will need payrolls to rise on an average of 200k for several months before it can bring down the unemployment rate to meet the Fed's criteria of scaling back its stimulus.
- Monday however, is expected to be positive as the JCI is seen rebounding with 5k returns as a decent resistance.Key support now lies at around 4840-4860.
Minggu, 09 Juni 2013
Morning Dew - 10 June 2013
Key Points
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