General Market Comment
US indices closed higher on Friday as the S&P500 reached a new record high. Shares in the Semiconductors & Semiconductor Equipment (+1.41%), Software & Services (+1.33%) and Media (+1.27%) sectors ended on a positive note. On the economic data front, durable goods orders decreased in the preliminary estimate of 1.7% in July (estimated -1%) from a revised 0.7% in the previous month. The S&P 500 (2,874.69) remains above its 20d moving average (2,841.89 – positive slope) and 50d moving average (2,800.96 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday. On the economic data front, durable goods orders decreased in the preliminary estimate of 1.7% in July (estimated -1%) from a revised 0.7% in the previous month.
The Euro was bullish against most of its major pairs with the exception of the AUD and the NZD. In Europe, Germany’s gross domestic product grew at a quarterly clip of 0.5% or an annualized rate of 1.8% in the second quarter. Imports increased 1.7% from the first quarter, while exports rose 0.7%. Household consumption expanded by 0.3% and government consumption rose 0.6% from the first quarter.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 18) was up $0.8 to $68.62. The contract was above its 20D MA (@ $66.84) and above its 50D MA (@ $67.2).
Gold was up $20.3 to $1205.8. The precious metal was above its 20D MA (@ $1202) and below its 50D MA (@ $1229).
Copper Future (DEC 18) on Comex was up 4c to 271.75c/lb. The contract was below its 20D MA (@ 273.18c) and below its 50D MA (@ 284.09c). In Europe, the London Metal Exchange reported its copper inventories increased 125 tons to 267075 tons.