General Market Comment 19.10.18

General Market Comment

US indices closed mixed to finish the week on Friday. Shares in the Consumer Durables & Apparel (-2.88%), Semiconductors & Semiconductor Equipment (-1.84%) and Health Care Equipment & Services (-1.27%) sectors were under pressure while shares in the Household & Personal Products (+5.51%), Food, Beverage & Tobacco (+1.64%) and Utilities (+1.58%) sectors gained traction. On the economic data front, existing home sales declined by 3.4% MoM to 5.15M units in September (estimated 5.29M units) from 5.33M units in August. The S&P 500 (2,767.78) remains at levels below both its 20d moving average (2,854.10 – negative slope) and 50d moving average (2,869.41 – negative slope).

European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was bearish against all of its major pairs on Friday. On the economic data front, existing home sales declined by 3.4% MoM to 5.15M units in September (estimated 5.29M units) from 5.33M units in August.

The Euro was bullish against most of its major pairs with the exception of the NZD. UK PSNB ex Banking Groups was a £4.1B excess in September vs £5.6B in August.

The Australian dollar was lower against most of its major pairs with the exception of the CAD and the JPY.

Commodities

After the close of Wall Street, WTI Crude Future (NOV 18) was up $0.6 to $69.29. The contract was below its 20D MA (@ $72.65) and below its 50D MA (@ $69.83).

Gold was about flat to $1226.8. The precious metal was above its 20D MA (@ $1205) and above its 50D MA (@ $1200).

Copper Future (DEC 18) on Comex was up 3.6c to 278.2c/lb. The contract was below its 20D MA (@ 279.38c) and above its 50D MA (@ 273c). In Europe, the London Metal Exchange reported its copper inventories decreased 4350 tons to 153950 tons.