General Market Comment
US indices closed mixed on Thursday. Shares in the Materials (-0.97%), Banks (-0.6%) and Commercial & Professional Services (-0.49%) sectors ended on a negative note while shares in the Technology Hardware & Equipment (+1.25%), Utilities (+0.96%) and Media (+0.87%) sectors improved higher. On the economic data front, initial jobless claims increased to 214k in week ended September 22nd (estimated 210k) from 202k in the previous week. Continuing claims reached 1.661M in week ended September 15th (forecasted 1.678M) compared to 1.645M a week earlier. In other news, wholesale inventories advanced by 0.8% MoM in a preliminary estimate in August (forecasted 0.3%) vs. 0.6% in July. Durable goods orders jumped by 4.5% in a preliminary estimate in August (expected 2%) from a decline of 1.2% in the prior month. In addition, pending home sales decreased by 1.8% MoM in August (estimated -0.5%) vs. -0.8% in July. The Bloomberg consumer comfort index improved to 61.2 in week ended September 23rd from 60.2 in the previous week. Finally, the annualized GDP remained unchanged QoQ in a third estimate at 4.2%, as expected. The S&P 500 (2,914.00) remains above its 20d moving average (2,900.86 – flat slope) and 50d moving average (2,865.99 – 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 increased to 214k in week ended September 22nd (estimated 210k) from 202k in the previous week. Continuing claims reached 1.661M in week ended September 15th (forecasted 1.678M) compared to 1.645M a week earlier. In other news, wholesale inventories advanced by 0.8% MoM in a preliminary estimate in August (forecasted 0.3%) vs. 0.6% in July. Durable goods orders jumped by 4.5% in a preliminary estimate in August (expected 2%) from a decline of 1.2% in the prior month. In addition, pending home sales decreased by 1.8% MoM in August (estimated -0.5%) vs. -0.8% in July. The Bloomberg consumer comfort index improved to 61.2 in week ended September 23rd from 60.2 in the previous week. Finally, the annualized GDP remained unchanged QoQ in a third estimate at 4.2%, as expected.
The Euro was bearish against most of its major pairs with the exception of the CHF. The euro zone consumer confidence was -2.9 in September in final estimation, as in first one, and vs -1.9 in August. Germany CPI growth was 2.3% in September YoY vs +2% expected and +2% the month before. Separately, German GfK consumer confidence index was 10.6 for October vs 10.5 expected and 10.5 in September.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was up $0.6 to $72.13. The contract was above its 20D MA (@ $69.71) and above its 50D MA (@ $67.96).
Gold was down $11.5 to $1182.9. The precious metal was below its 20D MA (@ $1199) and below its 50D MA (@ $1204).
Copper Future (DEC 18) on Comex was down 5.1c to 277.7c/lb. The contract was above its 20D MA (@ 270.44c) and above its 50D MA (@ 273.1c). In Europe, the London Metal Exchange reported its copper inventories decreased 1000 tons to 209900 tons.