ISM Manufacturing Employment index decreased from 51.1 in May to 49.3 in June, compared to analyst consensus of 50.0, while New Orders index increased from 45.4 to 49.3.
The Institute for Supply Management commented: “Demand remains subdued, as companies demonstrate an unwillingness to invest in capital and inventory due to current monetary policy and other conditions.”
Today, traders also had a chance to take a look at the final reading of S&P Global Manufacturing PMI report. The report showed that S&P Global Manufacturing PMI increased from 51.3 in May to 51.6 in June, compared to analyst forecast of 51.7.
U.S. Dollar Index made an attempt to settle below the 105.60 level as traders reacted to the weaker-than-expected report. Treasury yields are moving higher, but this move does not provide sufficient support to the American currency.
Gold gains ground despite rising Treasury yields as traders focus on dollar’s pullback. Currently, spot gold is trading near the $2330 level.
SP500 tests session lows as traders focus on current trends in the U.S. manufacturing sector. Some traders may use the disappointing report as an excuse to take some profits off the table near historic highs.
