General Market Comment
US indices closed lower to finish the week on Friday, pressured by shares in the Semiconductors & Semiconductor Equipment (-2.22%), Software & Services (-2%) and Technology Hardware & Equipment (-1.81%) sectors. On the economic data front, 2Q advance GDP increased to 4.1% (estimated 4.2%) from a revised 2.2% in the previous quarter. 2Q advance personal consumption also increased to 4% (expected 3%) from a revised 0.5% in the prior quarter. Finally, the University of Michigan consumer sentiment index decreased to 97.9 in final estimate in July (expected 97.1) from 98.2 in the prior month. The S&P 500 (2,818.82) remains above both its 20d moving average (2,788.30 – positive slope) and 50d moving average (2,761.62 – positive slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday. On the economic data front, 2Q advance GDP increased to 4.1% (estimated 4.2%) from a revised 2.2% in the previous quarter. 2Q advance personal consumption also increased to 4% (expected 3%) from a revised 0.5% in the prior quarter. Finally, the University of Michigan consumer sentiment index decreased to 97.9 in final estimate in July (expected 97.1) from 98.2 in the prior month.
The Euro was mixed against its major pairs. In Europe, French GDP growth was 0.2% in 2Q in first reading (+0.3% expected), the same pace than in 1Q.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 18) was down $0.7 to $68.94. The contract was below its 20D MA (@ $69.67) and above its 50D MA (@ $68.27).
Gold was about flat to $1223.3. The precious metal was below its 20D MA (@ $1239) and below its 50D MA (@ $1267).
Copper Future (SEP 18) on Comex was down 2.3c to 279.55c/lb. The contract was below its 20D MA (@ 280.87c) and below its 50D MA (@ 300.36c). In Europe, the London Metal Exchange reported its copper inventories increased 1575 tons to 253525 tons.