Asia

Japan June Flash Manufacturing PMI Shows First Expansion In Three Months. Japanese manufacturing activity expanded in June for the first time in three months, a preliminary survey showed on Monday, in a sign that domestic demand has quickly recovered from a sales tax increase at the start of April. The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 51.1 in June from a final reading of 49.9 in May. The index rose above the 50 threshold that separates expansion from contraction for the first time in three months. The output component of the flash PMI index rose to 51.8 from a final 48.9 in April. (Reuters)

China Manufacturing Gauge Climbs In Sign Of Pickup. A Chinese manufacturing gauge rose to a seven-month high in June, supporting Premier Li Keqiang’s contention that the economy will avoid a hard landing as the government steps up efforts to spur growth. A preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 50.8, exceeding the 49.7 median estimate of analysts surveyed by Bloomberg News and a final reading of 49.4 in May. A number above 50 indicates expansion. (Bloomberg)

USA

US Manufacturing Expands In June At Fastest Rate In 4 Years. The U.S. manufacturing sector expanded more strongly than expected in June, with the rate of growth and key subindexes advancing to their highest levels in more than four years, an industry report showed on Monday. Financial data firm Markit said its preliminary or "flash" U.S. Manufacturing Purchasing Managers Index rose to 57.5 in June, above economist expectations for 56.5 and the highest reading since May 2010. In May, the final read for the index was 56.4. A reading above 50 signals expansion in economic activity. (CNBC)

U.S. Business Borrowing For Equipment Falls 8 % In May. U.S. companies' borrowing to spend on capital investment fell in May, the Equipment Leasing and Finance Association (ELFA) said. Companies signed up for $6.9 billion in new loans, leases and lines of credit last month, down 8 % from a year earlier. Their borrowing fell 14 % from April. "The small decline in new business volume makes the case for a slow recovery in certain sectors of the economy in which equipment financing plays an important role," ELFA Chief Executive William Sutton said in a statement. Washington-based ELFA, a trade association that reports economic activity for the $827 billion equipment finance sector, said credit approvals totalled 76.1 % in May, down from 77.4 % in April. (Reuters)

Sales Pickup Shows Healing U.S. Real Estate Market. Americans snapped up previously owned homes in May in the biggest monthly sales gain in almost three years, a sign the residential real estate market is regaining its footing after a stumble early in the year. Purchases climbed 4.9 %, the biggest increase since August 2011, to a 4.89 million annualized rate, figures from the National Association of Realtors showed today in Washington. The level was the strongest since October. The report also showed price appreciation is slowing as more homes become available. (Bloomberg)

Europe

Eurozone Business Growth Slows In June. The eurozone’s private sector expansion has unexpectedly slowed this month even though companies are still cutting prices to drum up business, a survey showed. Germany and France went their separate ways again, with German business activity expanding robustly, albeit at a slower pace than last month, while France’s private sector shrank at the fastest rate in four months. Markit’s Composite Purchasing Managers’ Index (PMI), based on surveys of thousands of companies across the region and seen as a good indicator of growth, fell to 52.8 from May’s 53.5, missing the consensus for 53.5 in a Reuters poll of analysts and matching the lowest forecast. Readings above 50 indicate expansion, and Williamson said that with a robust recovery evident in periphery countries the data still point to second-quarter economic growth of 0.4%. Germany, Europe’s largest economy, was again the driving force although its composite PMI eased to 54.2 from 55.6. But the French index slumped to 48.0 from 49.3, its lowest reading since February. Also somewhat worryingly for the European Central Bank (ECB), a composite PMI subindex measuring output prices held below the 50 mark for the 27th month, coming in at 49.7 as firms kept cutting prices to lure customers despite soaring input costs. (Reuters)

Currencies

Aussie Rises After China’s Manufacturing Expands. The Australian dollar rose against the U.S. dollar Monday after a better-than-expected reading on Chinese manufacturing showed a return to expansion. The Australian dollar rose to 94.19 U.S. cents from 93.89 U.S. cents late Friday. The New Zealand dollar inched up to 87.12 U.S. cents from 86.97 U.S. cents. The ICE dollar index , which pits the greenback against six other currencies, fell to 80.270 from 80.407 late Friday. The dollar fell to ¥101.90 from ¥102.13 late Friday. The euro rose to $1.3603 from $1.3586 late Friday, while the pound moved up to $1.7025 from $1.7007. (Market Watch)

Commodities

Brent Crude Falls Again As Iraq Supply Fears Ease. Brent crude recorded its largest one-day decline in seven weeks on Monday, falling toward $114 a barrel as oil exports from Iraq remained unaffected by Islamic insurgents' continued advance on Baghdad. Brent fell 69 cents to settle at $114.12 it's biggest %age drop since May 6. U.S. crude for August delivery dropped 66 cents to settle at $106.17, its biggest slide since May 2. (Reuters)

Gold Rises On Iraq, S&P Drop; Platinum Down As Strike Ends. Gold rose on Monday on weaker U.S. equity markets and geopolitical tensions over increasing violence in Iraq, while platinum eased as South African miners' union declared an official end to a five-month strike. Spot gold was up 0.1 % at $1,315.60 an ounce by 3 p.m. EDT (1900 GMT). Platinum dropped 50 cents to $1,453.25 an ounce, while palladium rose 0.4 % to $820.25 an ounce. Silver inched down 1 cent at $20.86 an ounce after jumping 6.3 % last week, its biggest gain since February. (Reuters)