Stocks are up on generally good earnings and USD is up and treasuries are down on modestly positive US econ data.
Australian export surges on commodities
• Australia smashed forecasts to post a record monthly trade surplus of 3.54 billion dollars (3.12 billion US) in June, data showed Wednesday, as the resource-rich country enjoys a return to boom conditions.
• The Australian Bureau of Statistics said a 23 percent spike in the value of iron and copper ore exports and a 15 percent rise for coal, mainly due to volume increases, were behind the unprecedented performance, which was double forecasts.
UK services sector growth slows
• We are definitely seeing decline in service sector strength. Services were a big contributor to Q2 GDP so we can certainly expect weaker Q3 GDP.
• Particularly unnerving is a big part of the weakness came from government cutbacks which haven’t even begun in earnest yet. This could be a foreshadow of the European austerity movement.
Eurozone retail sales in stagnation
• In Europe much like in US the rebound in manufacturing has failed to spread to consumers. Sales fell sharply in Germany and France – two strongest economies in Europe.
• With consumer confidence rising and unemployment situation looking better perhaps sales would pick up but any of that effect can be overwhelmed by austerity.
US services industry notching up a modest gain – continuing the pattern of recovery.
• Data points to a very sluggish recovery but at least with momentum intact.
US ADP survey suggests improving job market (but a WEAK improvement)
• Private payroll gained 42,000 versus 13,000 month before. Not strong but certainly not getting worse.
Xstrata – one of the biggest miners in the world – sees copper market tightening
• The copper division CEO stated china demand likely to slow down but overall global demand is looking to grow in a balanced economy.
China’s effort to bring electricity to rural areas – positive for copper
• China's plan to bring electricity to rural areas would increase demand by one million tonnes of copper in the next two and a half years, Chile's state miner Codelco said in a statement on Tuesday, citing a seminar it organized in Shanghai.
• China is the world's top consumer of the metal used in everything from electricity lines to water pipes.
Wheat continues to rise on Black Sea crop worries
• U.S. wheat futures up about 5% as concerns over production in the drought-ravaged Black Sea region returned to the market following a dip in the previous session.
• "Fires are devastating the area and temperatures are going to be high and there is no guarantee that it's going to stop," said Peter McGuire, managing director of CWA Global Markets in Sydney.
Indonesia cocoa export up 50%
• Cocoa bean exports from Indonesia's main growing island of Sulawesi rose 50 percent to 44,552.08 tonnes in July, from 29,724.61 tonnes a year ago, trade data showed on Wednesday, due to higher purchase and stocks.
• July exports also surged 71 percent from 25,990.4 tonnes shipped out in June.
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