The U.S. Comex gold futures dropped 0.94 percent this week and fell 1.64 percent this month to end at $1,152.60. Month-to-date, the Standard&Poors 500 Index returned 0.91 percent while the Euro Stoxx 50 Index fell 3.74 percent.
The CRB Commodity Index dropped 5.12 percent, with the crude oil futures plunging 12.01 percent just in seven days! This week, the ten-year U.S. Treasury bond yield dropped 12bp to 2.258 percent on Tuesday, the ten-year German Bund yield dropped 13bp to 0.64 percent, and the ten-year Italian bond yield rose 2bp to 2.264 percent.
The Dollar Index surged from 95.485 at the end of June to 96.865 on Tuesday.
The market will closely monitor the Federal Open Market Committee June minutes this Wednesday. Will the Greece situation and other global developments affect the timing of the rate hike? For those five officials who predicted one rate hike this year, when would that rate hike likely to be?
The U.S. May job openings were 5.36 million, higher than the 5.3 million expected. For every job opening, there are about 1.6 unemployed people, compared to 1.8 in December 2007. Stronger labour data raise the likelihood of the first rate hike this year.
After the “No” vote to the lenders’ conditions, Greece is given until Sunday to accept a new package on the conditions of making new reform proposals. Bloomberg reported that the EC is preparing for a “Grexit”, with the triggers being the European governments stopping any aids to Greece and the ECB not supplying Euros to Greece.