General Market Comment
US indices closed lower on Thursday as the Dow and Nasdaq finished lower for the 8th time in 11 sessions. Shares in the Media (-2.42%), Retailing (-2.37%) and Automobiles & Components (-2.34%) sectors dragged the market lower. On the economic data front, initial jobless claims reached 210k in week ended October 13th (estimated 211k) from 215k in the previous week. Continuing claims declined to 1.64M in week ended October 6th (forecasted 1.663M) compared to 1.653M a week earlier. The Philadelphia Federal Business Outlook index survey slightly diminished to 22.2 in October (expected 20) from 22.9 in September. The Bloomberg consumer comfort index improved to 60.8 in week ended October 14th vs. 59.5 in the prior week. Finally, the Leading Index advanced by 0.5% in September, aligned with expectations, compared to 0.4% in August. The S&P 500 (2,768.78) remains at levels below both its 20d moving average (2,862.20 – negative slope) and 50d moving average (2,871.13 – negative 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 Thursday with the exception of the JPY. On the economic data front, initial jobless claims reached 210k in week ended October 13th (estimated 211k) from 215k in the previous week. Continuing claims declined to 1.64M in week ended October 6th (forecasted 1.663M) compared to 1.653M a week earlier. The Philadelphia Federal Business Outlook index survey slightly diminished to 22.2 in October (expected 20) from 22.9 in September. The Bloomberg consumer comfort index improved to 60.8 in week ended October 14th vs. 59.5 in the prior week. Finally, the Leading Index advanced by 0.5% in September, aligned with expectations, compared to 0.4% in August.
The Euro was bearish against most of its major pairs with the exception of the CAD and the GBP. UK retail sales declined 0.8% in September after increasing 0.4% in August (revised from +0.3%). Economists anticipated a 0.4% drop.
The Australian dollar was bearish against most of its major pairs with the exception of the CAD and the EUR.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was down $1.1 to $68.69. The contract was below its 20D MA (@ $72.73) and below its 50D MA (@ $69.76).
Gold was up $3.5 to $1225.9. The precious metal was above its 20D MA (@ $1204) and above its 50D MA (@ $1200).
Copper Future (DEC 18) on Comex was down 4.6c to 273.25c/lb. The contract was below its 20D MA (@ 279.69c) and above its 50D MA (@ 272.99c). In Europe, the London Metal Exchange reported its copper inventories decreased 2600 tons to 158300 tons.