General Market Comment
US indices closed higher on Friday lifted by shares in the Consumer Durables & Apparel (+3.75%), Energy (+0.65%) and Pharmaceuticals, Biotechnology & Life Sciences (+0.6%) sectors. On the economic data front, personal income increased by 0.4% in May, meeting the estimate, from +0.2% in the prior month while personal spending increased by 0.2% in May, below the estimate of +0.4%, from +0.5% previously. In addition, the Chicago business barometer index increased to 64.1 in June (expected 60) from 62.7 in the previous month. Finally, the University of Michigan consumer sentiment index increased to 98.2 in June (anticipated 99) from 98 in May. The S&P 500 (2,718.37) is still below its 20d moving average (2,755.34 – flat) but breaks above 50d moving average (2,717.47 – flat). European markets are expected to open on a negative note.
Foreign Exchange
The US dollar was bearish against its major pairs on Friday with exception of the JPY. On the economic data front, personal income increased by 0.4% in May, meeting the estimate, from +0.2% in the prior month while personal spending increased by 0.2% in May, below the estimate of +0.4%, from +0.5% previously. In addition, the Chicago business barometer index increased to 64.1 in June (expected 60) from 62.7 in the previous month. Finally, the University of Michigan consumer sentiment index increased to 98.2 in June (anticipated 99) from 98 in May.
The Euro was bullish against all of its major pairs. Eurozone CPI came in at 2.0% in June, matching expectations. Meanwhile, the core figures eased to 1.0% also coming in line with the expectations and 1.1% previous. Germany June unemployment change -15k vs -8k expected. The unemployment rate came in at 5.2% in June. Finally, the UK’s first-quarter GDP growth was revised up to a 0.2% rate vs 0.1%.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was up $0.9 to $74.33. The contract was above its 20D MA (@ $67.32) and above its 50D MA (@ $68.4). The 14d RSI above 70 (71.72) indicates WTI Crude Future (AUG 18) was overbought.
Gold was up $4.9 to $1253.2. The precious metal was below its 20D MA (@ $1280) and below its 50D MA (@ $1296). The 14d RSI below 30 (27.15) indicates gold was oversold.
Copper Future (SEP 18) on Comex was about flat to 296.6c/lb. The contract was below its 20D MA (@ 314.1c) and below its 50D MA (@ 312.33c). The 14d RSI below 30 (29.71) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 3725 tons to 294525 tons.