General Market Comment
US indices closed higher on Thursday lifted by shares in the Software & Services (+2.13%), Technology Hardware & Equipment (+1.77%) and Capital Goods (+1.33%) sectors. On the economic data front, initial jobless claims decreased to 214K in the week ending July 7 (estimated 225K) from a revised 232K previously. Continuing claims also decreased to 1.739M in the week ending June 30 (anticipated 1.73M) from a revised $1.742M last week. In addition, CPI MoM increased by 0.1% in June (expected 0.2%) from 0.2 in May. Finally, the Bloomberg consumer comfort index increased to 58 in the week ending July 8 from 57.6 in the prior week. The S&P 500 (2,798.29) remains above its 20d moving average (2,751.55 – flat slope) and 50d moving average (2,734.12 – 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 Thursday with exception of the CHF and the JPY. On the economic data front, initial jobless claims decreased to 214K in the week ending July 7 (estimated 225K) from a revised 232K previously. Continuing claims also decreased to 1.739M in the week ending June 30 (anticipated 1.73M) from a revised $1.742M last week. In addition, CPI MoM increased by 0.1% in June (expected 0.2%) from 0.2 in May. Finally, the Bloomberg consumer comfort index increased to 58 in the week ending July 8 from 57.6 in the prior week.
The Euro was also mixed against its major pairs. Eurozone industrial production increased 1.3% in May after a 0.8% slid the month before. Economists anticipated a 1.2% rise. Germany CPI was up by 0.1% in June in the final estimation, as in the first one and after a 0.5% increase in May.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was about flat to $70.25. The contract was above its 20D MA (@ $70.22) and above its 50D MA (@ $69.25).
Gold was up $5 to $1246.9. The precious metal was below its 20D MA (@ $1259) and below its 50D MA (@ $1284).
Copper Future (SEP 18) on Comex was up 3.3c to 277.7c/lb. The contract was below its 20D MA (@ 297.27c) and below its 50D MA (@ 307.59c). The 14d RSI below 30 (24.52) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 2725 tons to 262750 tons.