General Market Comment
US indices closed mixed to finish the week on Friday even though the Dow reached an all-time high and the S&P500 reached an intraday-high. Shares in the Retailing (-0.64%), Automobiles & Components (-0.62%) and Banks (-0.61%) sectors ended lower while shares in the Consumer Services (+0.98%), Telecommunication Services (+0.98%) and Energy (+0.72%) sectors ended in positive territory. On the economic data front, Markit US manufacturing PMI reached 55.6 as a preliminary estimate in September (estimated 55) from 54.7 in August. On the other hand, Markit US services PMI diminished to 52.9 in a preliminary estimate in September (forecasted 55) compared to 54.8 in the previous month. Finally, Markit US composite PMI came out to 53.4 in a preliminary estimate in September vs. 54.7 a month earlier. The S&P 500 (2,929.67) remains above its 20d moving average (2,897.26 – positive slope) and 50d moving average (2,857.39 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish all of its major pairs on Friday. On the economic data front, Markit US manufacturing PMI reached 55.6 as a preliminary estimate in September (estimated 55) from 54.7 in August. On the other hand, Markit US services PMI diminished to 52.9 in a preliminary estimate in September (forecasted 55) compared to 54.8 in the previous month. Finally, Markit US composite PMI came out to 53.4 in a preliminary estimate in September vs. 54.7 a month earlier.
The Euro was bearish against most of its major pairs with the exception of the GBP. The Euro zone PMI manufacturing index slid to 53.3 in first reading from 54.6 a month earlier. Economists anticipated 54.5. Separately, euro zone PMI services index was up to 54.7 in first estimation (54.4 expected) from 54.4 the month before. UK PSNB ex banking groups was £6.8B in August vs £-3.1B in July.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was about flat to $70.84. The contract was above its 20D MA (@ $69.03) and above its 50D MA (@ $67.49).
Gold was down $8.3 to $1198.9. The precious metal was below its 20D MA (@ $1201) and below its 50D MA (@ $1206).
Copper Future (DEC 18) on Comex was up 10.9c to 284.9c/lb. The contract was above its 20D MA (@ 268.82c) and above its 50D MA (@ 272.84c). In Europe, the London Metal Exchange reported its copper inventories increased 1600 tons to 216600 tons.