Monday, July 1, 2013

Economic Journal - Monday, 7/1/2013

(As of 7:18 am PST)
 
Markets are rallying to start the 3rd quarter with all three major indexes up over 1%.  US markets got a lift in early trade on positive data out of Europe and Japan.  Euro-zone manufacturing activity improved to a 16 month high, but still remained in contractionary territory.  Asian markets were mixed as Chinese manufacturing slowed, but a Japanese survey showed a sharp improvement in sentiment among large businesses.  The Nikkei rose 1.28% as the yen weakened against the dollar.  Wall St. gains are strengthening after a report on ISM manufacturing improved in May and a report on construction spending showed an increase as well.  In company news, shares of Apple are up nearly 2.5% after Raymond James upgraded the stock.  After shedding 14% in June, gold is enjoying a nice start to the quarter, up 1% on the session.  It looks like a positive day is in the making but expect volatility to return to the markets in this holiday shortened week as investors look to Friday’s jobs report for signs of the Fed’s next policy move.  Weaning markets off the Fed’s asset purchase program will continue to be the main storyline in the 3rd quarter.   

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