General Market Comment 11.10.18

General Market Comment

US indices closed lower on Thursday for the sixth day straight as the Dow Jones dropped by 546 points. Shares in the Insurance (-3.69%), Pharmaceuticals, Biotechnology & Life Sciences (-3.1%) and Energy (-3.09%) sectors dragged the market lower. On the economic data front, CPI improved by 0.1% MoM in September (estimated 0.2%) from 0.2% in the prior month. In other news, initial jobless claims increased to 214k in week ended October 6th (forecasted 207k) from 207k in the previous week. Continuing claims reached 1.66M in week ended September 29t, in-line with expectations, compared to 1.656M a week earlier. Finally, the Bloomberg consumer comfort index diminished to 59.5 in week ended October 7th vs. 61.6 in the prior week. The S&P 500 (2,728.37) stays below both 20d moving average (2,775.46 – negative slope) and 50d moving average (2,833.29 – negative slope).

European markets are expected to open on a positive note.

Foreign Exchange

The US dollar was bearish against all of its major pairs on Thursday. On the economic data front, CPI improved by 0.1% MoM in September (estimated 0.2%) from 0.2% in the prior month. In other news, initial jobless claims increased to 214k in week ended October 6th (forecasted 207k) from 207k in the previous week. Continuing claims reached 1.66M in week ended September 29t, in-line with expectations, compared to 1.656M a week earlier. Finally, the Bloomberg consumer comfort index diminished to 59.5 in week ended October 7th vs. 61.6 in the prior week.

The Euro was bullish against most of its major pairs with the exception of the NZD and the AUD. According to RICS, UK house price balance index was -2% in September (+1% expected) vs +1% a month earlier (revised from +2%).

The Australian dollar was higher 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 down $2.3 to $70.87. The contract was below its 20D MA (@ $72.46) and above its 50D MA (@ $69.4). The US Department of Energy reported that, for the week ended 5 October, crude oil inventories increased 5987k barrels compared to the previous week.

Gold was up $29.4 to $1224.2. The precious metal was above its 20D MA (@ $1198) and above its 50D MA (@ $1199).

Copper Future (DEC 18) on Comex was down 1.1c to 277c/lb. The contract was below its 20D MA (@ 277.62c) and above its 50D MA (@ 272.85c). In Europe, the London Metal Exchange reported its copper inventories decreased 3400 tons to 170100 tons.