Manufacturing Strength Helps Markets Start June Higher

June begins with stock markets climbing as investors respond positively to a stronger than expected round of Manufacturing PMI reports from around the world. Many of these surveys have come in above 50, signalling expansion, while also topping expectations. Copper has been a notable beneficiary of this news, which may be seen as a sign of a more robust global economy.

There has been no meaningful change in the Iran war situation, with Crude Oil bouncing back this morning.

NASDAQ futures are up 0.1%, while Dow Futures are up 0.3%. In Asia, the Nikkei gained 0.9% and the Hang Seng rose 0.9%. In Europe, the DAX is up 0.5%, while the FTSE is down 0.2%.

In commodities, Crude Oil is up 3.2%, Gasoline is down 2.1%, Gold is down 1.2%, Copper is up 2.6%, and Silver is down 0.1%.

In fixed income, the US 10-year Treasury note yield is steady just below 4.50%, while the US 30-year Treasury note yield is steady just below 5.00%. The US Dollar is climbing against other currencies today, while the Loonie is broadly weakening. The Euro is down 0.1%, while the Loonie is down 0.3%.

Focus this week turns to economic news. Canada Manufacturing PMI, previously 53.3, is due at 9:30 am EDT. US ISM Manufacturing PMI is due at 10:00 am EDT (Street 53.0 v. previous 52.7), along with US Construction Spending (Street 0.2% v. previous 0.6%).

US ADP payrolls and global Service PMI reports are due Wednesday, followed by US Nonfarm Payrolls on Friday. Earnings reports of note this week include Hewlett Packard after the close today, Macy’s and Broadcom* on Wednesday, wrapping up with Ciena* and lululemon on Thursday.

*Shares of Broadcom and Ciena are held in some portfolios managed by SIA Wealth Management.

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