Stock market bulls have eased off the throttle a bit in recent days as last week’s lackluster employment report reminded investors that while the housing market may have turned the corner, the labor market recovery remains anemic. To top it off, Fed Dallas official Fisher reminded investors in a speech on Monday that policymakers will need to scale back on bond repurchases because it is unhealthy for markets to keep rising on the notion that stimulus will always be readily available [for more commodity futures news and analysis subscribe to our free newsletter]. On the commodity front, with the exception of crude oil, metals and agriculture prices remain largely suppressed across the board thanks to a strong U.S. dollar and lackluster growth in China. The recent rate cut by the Reserve Bank of Australia plays a major role in the world of precious metals for two reasons.
Major equity indexes appear to have resumed their uptrend following a brief pullback in late June. U.S. stocks in particular have been charging higher since investors returned from the Independence Day Holiday weekend on hopes that the Federal Reserve will not prematurely scale back on stimulus efforts, which was the original concern that sparked the broad market sell-off on May 22nd [for more commodity futures news and analysis subscribe to our free newsletter].