General Market Comment
US indices closed higher at the end of the week after positive jobs data. Shares in the Pharmaceuticals, Biotechnology & Life Sciences (+1.95%), Software & Services (+1.29%) and Semiconductors & Semiconductor Equipment (+1.24%) sectors. On the economic data front, Nonfarm payrolls increased 213K in June while estimates were for an increase of 195K compared to a revised 244K in May. The unemployment rate climbed up to 4% in June (+3.8% estimate) compared to +3.8% in May. Finally, the US trade balance narrowed to -$43.1B in May (-$43.6B estimate) compared to a revised -$46.1B in April. The S&P 500 (2,759.82) breaks above its 20d moving average (2,750.24 – negative slope) and stays above 50d moving average (2,723.91 – positive slope). European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against all of its pairs on Friday. On the economic data front, Nonfarm payrolls increased 213K in June while estimates were for an increase of 195K compared to a revised 244K in May. The unemployment rate climbed up to 4% in June (+3.8% estimate) compared to +3.8% in May. Finally, the US trade balance narrowed to -$43.1B in May (-$43.6B estimate) compared to a revised -$46.1B in April.
The Euro was bullish against its major pairs with exception of the NZD and the AUD. Germany industrial production jumped 2.6% in May after declining 1.3% in April (revised from -1%). It was expected to be up 0.3%. According to Halifax, UK house prices rose 0.3% in June (+0.2% anticipated) after being up 1.7% a month earlier.
The Australian dollar was bullish against its major pairs with exception of the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was up $0.9 to $73.83. The contract was above its 20D MA (@ $69.01) and above its 50D MA (@ $68.88).
Gold was down $2.7 to $1255.2. The precious metal was below its 20D MA (@ $1269) and below its 50D MA (@ $1289).
Copper Future (SEP 18) on Comex was about flat to 281.9c/lb. The contract was below its 20D MA (@ 306.89c) and below its 50D MA (@ 309.97c). The 14d RSI below 30 (19.73) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 3525 tons to 275475 tons.