General Market Comment
US indices closed higher on Friday despite a negative week. Shares in the Software & Services (+3.42%), Technology Hardware & Equipment (+3.33%) and Retailing (+2.75%) sectors were under pressure. On the economic data front, import price index advanced by 0.5% MoM in September (estimated 0.2%) from a decline of 0.4%. In other news, the University of Michigan sentiment index reached a preliminary estimate of 99 in October (estimated 100.5) from 100.1 in September. The S&P 500 (2,767.13) stays above its 20d moving average (2,751.92 – flat slope) but below its 50d moving average (2,797.98 – negative slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Friday with the exception of the JPY. On the economic data front, import price index advanced by 0.5% MoM in September (estimated 0.2%) from a decline of 0.4%. In other news, the University of Michigan sentiment index reached a preliminary estimate of 99 in October (estimated 100.5) from 100.1 in September.
The Euro was bearish against most of its major pairs with the exception of the GBP. Euro zone industrial production increased 1% in August after a 0.7% drop a month earlier. Economists anticipated a 0.5% rise. German CPI was up 0.4% in September in final estimation, as in first one, vs +0.1% in August.
The Australian dollar was lower against most of its major pairs with the exception of the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was up $0.6 to $71.57. The contract was below its 20D MA (@ $72.6) and above its 50D MA (@ $69.49).
Gold was down $6.3 to $1217.8. The precious metal was above its 20D MA (@ $1199) and above its 50D MA (@ $1199).
Copper Future (DEC 18) on Comex was up 1.4c to 281.65c/lb. The contract was above its 20D MA (@ 278.63c) and above its 50D MA (@ 273.02c). In Europe, the London Metal Exchange reported its copper inventories decreased 3500 tons to 166600 tons.