General Market Comment
US indices closed lower on Friday after President Trump authorized the doubling of metals tariffs on Turkey. Shares in the Semiconductors & Semiconductor Equipment (-2.23%), Automobiles & Components (-2.11%) and Materials (-1.43%) sectors were under pressure. On the economic data front, CPI MoM increased by 0.2% in July, meeting the estimate, from +0.1% in June. Lastly, monthly budget statement deficit increased to $76.9B (estimated $75.4B) in July vs. $42.9B in June. The S&P 500 (2,833.28) remains above both its 20d moving average (2,825.64 – positive slope) and 50d moving average (2,784.85 – positive slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bullish against its major pairs on Friday with exception of the JPY. On the economic data front, CPI MoM increased by 0.2% in July, meeting the estimate, from +0.1% in June. Lastly, monthly budget statement deficit increased to $76.9B (estimated $75.4B) in July vs. $42.9B in June.
The Euro was bearish against all of its major pairs. UK GDP growth was 0.4% in 2Q in the first estimation, as expected, vs +0.2% in the previous quarter. Separately, industrial production was up by 0.4% in June (+0.3% anticipated) after being down 0.2% in May (revised from -0.4%). Finally, the trade balance deficit narrowed to £1.86B in June from £3.14B in May. French industrial production increased 0.6% in June (+0.5% expected) after a 0.2% slide the month before.
The Australian dollar was bearish against its major pairs with exception of the EUR.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 18) was up $0.9 to $67.73. The contract was below its 20D MA (@ $68.31) and below its 50D MA (@ $68.06).
Gold was about flat to $1211.5. The precious metal was below its 20D MA (@ $1221) and below its 50D MA (@ $1250).
Copper Future (SEP 18) on Comex was down 2.1c to 274.4c/lb. The contract was below its 20D MA (@ 276.67c) and below its 50D MA (@ 293.54c). In Europe, the London Metal Exchange reported its copper inventories increased 900 tons to 253525 tons.