General Market Comment
US indices closed lower on Friday as the markets continued to be under pressure. Shares in the Semiconductors & Semiconductor Equipment (-2.37%), Food & Staples Retailing (-2.09%) and Technology Hardware & Equipment (-1.6%) sectors were the biggest losers. On the economic data front, the trade deficit widened to $53.2B in August (estimated $53.6B) from $50.0B in July. Nonfarm payrolls rose 134K in September (forecast +185k) compared to +270k in August. In other news, unemployment rate improved to 3.7% in September (expected 3.8%) from 3.9% a month earlier. The S&P 500 (2,885.57) stays below its 20d moving average (2,907.71 – flat slope) but remains above 50d moving average (2,877.14 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Friday with the exception of the GBP and the JPY. On the economic data front, the trade deficit widened to $53.2B (estimated $53.6B) from $50B in the previous year. Change in nonfarm payrolls fell to 134k in September (forecasted 185k) compared to 270k in August. In other news, unemployment rate improved to 3.7% in September (expected 3.8%) vs. 3.9% a month earlier.
The Euro was bullish against most of its major pairs with the exception of the GBP and the JPY. German factory orders increased 2% in August after a 0.9% decline a month earlier. Economists anticipated a 0.8% rise. According to Halifax, UK house prices decreased 1.4% in September after a 0.1% rise in August. Economists anticipated a 0.2% increase.
The Australian dollar was lower against most of its major pairs with the exception of the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was about flat to $74.34. The contract was above its 20D MA (@ $71.54) and above its 50D MA (@ $68.92).
Gold was up $3.7 to $1203.7. The precious metal was above its 20D MA (@ $1198) and above its 50D MA (@ $1200).
Copper Future (DEC 18) on Comex was down 1.6c to 276.2c/lb. The contract was above its 20D MA (@ 275.03c) and above its 50D MA (@ 273.12c). In Europe, the London Metal Exchange reported its copper inventories decreased 2150 tons to 186800 tons.