General Market Comment
US indices closed lower on Thursday as the US 10-year yield hits the highest level since 2011 while the 30-year yield reached its highest level since 2014. Shares in the Consumer Durables & Apparel (-2.55%), Media (-2.07%) and Software & Services (-1.97%) sectors took a hit. On the economic data front, initial jobless claims fell to 207K in the week ended September 29 (vs 215K expected) from 215K in the previous week. Continuing claims decreased to 1.65M in the week ended September 22 (vs 1.665M expected) from 1.663M a week earlier. The S&P 500 (2,901.61) breaks below its 20d moving average (2,907.01 – positive slope) but remains above 50d moving average (2,876.17 – positive slope).
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Thursday with the exception of the NZD, the AUD and the CAD. On the economic data front, initial jobless claims was diminished to 207k in week ended September 29th (estimated 215k) from 215k in the previous week. Continuing claims decreased to 1.65M in week ended September 22nd (forecasted 1.665M) compared to 1.663M a week earlier. In other news, the Bloomberg consumer comfort index slightly increased to 61.6 in week ended September 30th vs. 61.2 in the prior week. Finally, factory orders increased by 2.3% in August (expected 2.1%) compared to a decline of 0.5% in July while durable goods orders advanced by 4.4% in August (estimated 4.5) vs. a decrease of 1.7% a month earlier.
The Euro was bullish against most of its major pairs with the exception of the GBP and the JPY. Germany Construction PMI index fell to 50.2 in September from 51.5 a month earlier. UK new car registrations plunged by 20.5% in September YoY after a 23.1% jump in August.
The Australian dollar was lower against most of its major pairs with the exception of the NZD and the CAD.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was down $1.9 to $74.52. The contract was above its 20D MA (@ $71.21) and above its 50D MA (@ $68.8). The 14d RSI above 70 (75.15) indicates WTI Crude Future (NOV 18) was overbought.
Gold was up $2.2 to $1199.5. The precious metal was above its 20D MA (@ $1198) and below its 50D MA (@ $1201).
Copper Future (DEC 18) on Comex was down 5c to 278.4c/lb. The contract was above its 20D MA (@ 274.37c) and above its 50D MA (@ 273.28c). In Europe, the London Metal Exchange reported its copper inventories decreased 5225 tons to 188950 tons.