ISM non-manufacturing reached all-time highs in July, suggesting the US economic growth will beat expectations. The S&P 500 outlook remains bullish as it builds energy to jump to a new record.
The equity markets in the United States welcomed the record level in the ISM (Institute of Supply Management) non-manufacturing data. The S&P 500 index (SPX), in particular, looks bullish, as it forms a possible bullish flag right below horizontal resistance. It appears that it builds energy to pop to a new record.
In Europe, the main indices are bullish as well. With no meaningful corrections, investors keep buying despite the somewhat high valuations. The German Dax index (DAX) trades at record highs, above 15,700 points, while the FTSE 100 sits comfortably above 7,130. The Bank of England will issue its monetary policy today, so the FTSE 100 may experience higher volatility than usual.
Commodities are quite weak today. The WTI crude oil price fell below $70, and that is a bearish break (OIL, BNO). If the weakness continues, expect other commodities to follow suit. Gold (GLD) is back testing the pivotal $1,800 while platinum (PPLT) sits close to the $1,000 mark.
Currencies are mixed, typical for the NFP week. Until the jobs data comes out tomorrow, expect more of the same.
Economic Events to Consider Today
The big event of the day comes from the United Kingdom. The Bank of England releases its Monetary Policy summary and traders will focus on changes on the MPC (Monetary Policy Committee) Official Bank Rate Votes. As such, the British pound pairs, as well as the FTSE 100, may be more volatile than usual.
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