General Market Comment
US indices closed mixed on Thursday. Shares in the Food & Staples Retailing (-1.27%), Banks (-0.73%) and Transportation (-0.52%) sectors ended on a negative note while shares in the Technology Hardware & Equipment (+1.94%), Semiconductors & Semiconductor Equipment (+1.72%) and Media (+1.68%) sectors gained momentum. On the economic data front, CPI improved by 0.2% MoM in August (estimated 0.3%) from an increase of 0.2% in July while CPI YoY advanced by 2.7% in August (forecasted 2.8%) compared to 2.9% last year. In other news, initial jobless claims reached 204k in week ended on September 8th (estimated 210k) from 205k in the previous week. Continuing claims lowered to 1.696M in week ended September 1st (expected 1.71M) vs. 1.711M a week earlier. Also, the Bloomberg consumer comfort index advanced to 59 in week ended September 9th compared to 58 the prior week. Finally, the monthly deficit widened to $214.1B in August (estimated $211B) from $107.7B in July. The S&P 500 (2,904.18) remains above its 20d moving average (2,880.42 – positive slope) and 50d moving average (2,840.99 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Thursday with the exception of the JPY. On the economic data front, CPI improved by 0.2% MoM in August (estimated 0.3%) from an increase of 0.2% in July while CPI YoY advanced by 2.7% in August (forecasted 2.8%) compared to 2.9% last year. In other news, initial jobless claims reached 204k in week ended on September 8th (estimated 210k) from 205k in the previous week. Continuing claims lowered to 1.696M in week ended September 1st (expected 1.71M) vs. 1.711M a week earlier. Also, the Bloomberg consumer comfort index advanced to 59 in week ended September 9th compared to 58 the prior week. Finally, the monthly deficit widened to $214.1B in August (estimated $211B) from $107.7B in July.
The Euro was bullish against all of its major pairs. In Europe, ECB kept its main refinancing rate at 0%, as expected, and added that it is confident on the inflation outlook. It also lowered its 2018 and 2019 growth forecasts to 2% and 1.8%, respectively, from 2.1% and 1.9%, previously anticipated. German CPI was 0.1% in August in final estimation, as in first reading, vs a 0.3% rise in July. Bank of England kept its main benchmark interest rate at 0.75% and stuck to its asset purchase target of £10B.
The Australian dollar was higher against most of its major pairs with the exception of the EUR, the GBP and the CHF.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 18) was down $1.6 to $68.8. The contract was above its 20D MA (@ $68.14) and above its 50D MA (@ $67.7).
Gold was down $4.3 to $1202. The precious metal was above its 20D MA (@ $1198) and below its 50D MA (@ $1212).
Copper Future (DEC 18) on Comex was about flat to 267.85c/lb. The contract was above its 20D MA (@ 267.32c) and below its 50D MA (@ 274.16c). In Europe, the London Metal Exchange reported its copper inventories decreased 7900 tons to 225125 tons.