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DJIA: positive momentum is maintained 07/07/2016

PCM Brokers

Technical analysis and trading recommendations - https://fxpcm.com/en/fx/djia-positive-momentum-maintained-07072016

Reduced concerns about the state of the global economy after Brexit and continued receipt of US positive macroeconomic data contribute to continued growth of US stock indices.

So, yesterday published PMI index for the non-productive sphere of the USA, presented by the Institute of Supply Management (the ISM), rose in June to the highest level since November (56.5 vs. 53.3 and 52.9 in May).

The US stock market also remained stable after the publication yesterday at 18:00 (GMT) minutes of the June meeting of the Fed, which showed differences in the leadership of the financial regulator with respect to the prospects for interest rates in the United States.

On Wednesday, the S & P500 index rose 11.18 points, or 0,5%, Nasdaq Composite - at 36.26 points, or 0.8%, while the Dow Jones Industrial Average - at 78.00 points, or 0.4%.

It seems that the impact of the results of the referendum in the UK is not felt as keenly in the United States, as in Europe and the UK.

Now, investors will closely monitor the release on Friday (12:30 GMT) on the US labor market data. According to the forecast expected a fairly high output (178, 000 new jobs created outside with / agricultural sector of the US economy), which indicates that the disappointing the May value (38 000 new jobs), the lowest since 2010, it was just a temporary deviation.

Positive NFP data indicate that the US economy is strong, despite the slow growth. And it will contribute to the further recovery of the US stock indices.
Negative NFP data will cause depreciation of the US dollar in the financial market.

Source: https://fxpcm.com/en/fx/djia-positive-momentum-maintained-07072016
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