General Market Comment
US indices closed lower on Thursday, dragged by shares in the Automobiles & Components (-1.09%), Materials (-0.7%) and Consumer Services (-0.69%) sectors. On the economic data front, initial jobless claims decreased to 210K in the week ending August 18 (estimated 215k) from 212K previously while continuing claims also decreased to 1.727M in the week ending August 11 (anticipated 1.73M) from a revised 1.729M last week. In addition, the FHFA house price index increased by 0.2% in June, below the estimate of +0.3%, from a revised +0.4% in May. Moreover, the Bloomberg consumer comfort index decreased to 58.6 in the week ending August 19 vs. 58.9 in the prior week and Markit manufacturing PMI decreased at a preliminary estimate of 54.5 in August (expected 55) compared to 55.3 in the prior month. Finally, new home sales decreased to 627K in July (estimated 645K) from a revised 638K in June. The S&P 500 (2,856.98) remains above its 20d moving average (2,839.10 – positive slope) and 50d moving average (2,799.11 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Thursday. On the economic data front, initial jobless claims decreased to 210K in the week ending August 18 (estimated 215k) from 212K previously while continuing claims also decreased to 1.727M in the week ending August 11 (anticipated 1.73M) from a revised 1.729M last week. In addition, the FHFA house price index increased by 0.2% in June, below the estimate of +0.3%, from a revised +0.4% in May. Moreover, the Bloomberg consumer comfort index decreased to 58.6 in the week ending August 19 vs. 58.9 in the prior week and Markit manufacturing PMI decreased at a preliminary estimate of 54.5 in August (expected 55) compared to 55.3 in the prior month. Finally, new home sales decreased to 627K in July (estimated 645K) from a revised 638K in June.
The Euro was bullish against most of its major pairs with the exception of the USD and the CHF. In the eurozone, consumer confidence declined to -1.9 in August from -0.6 in July, below expectations. The PMI composite nudged up in August to 54.4 from 54.3, coming in just below expectations. Germany with reading at 55.7 and France with a reading at 55.1 showed surprising improvements in their PMI. Manufacturing confidence in France came at 110 in August from 109 in July, above expectations.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 18) was about flat to $67.88. The contract was above its 20D MA (@ $66.79) and above its 50D MA (@ $67.14).
Gold was down $10.4 to $1185.5. The precious metal was below its 20D MA (@ $1203) and below its 50D MA (@ $1231).
Copper Future (DEC 18) on Comex was down 2.6c to 266.75c/lb. The contract was below its 20D MA (@ 273.66c) and below its 50D MA (@ 285.17c). In Europe, the London Metal Exchange reported its copper inventories increased 4100 tons to 266950 tons.