General Market Comment
US indices continued their declines on Friday pressured by shares in the Retailing (-4.71%), Real Estate (-2.59%), Telecommunication Services (-2.53%) sectors. On the economic data front, 3Q GDP expanded 3.5%, above the 3.3% estimate compared to a prior reading of 4.2% which marks the strongest consecutive quarters of growth since 2014. U.S. personal spending increased 4% in the same period, also above its 3.3% estimate vs a gain of 3.8% last quarter. Finally, the University of Michigan consumer sentiment index weakened to 98.6 in Oct (99 estimate) compared to 99 in Sept. The S&P 500 (2,658.69) remains at levels below both its 20d moving average (2,801.50 – negative slope) and 50d moving average (2,856.66 – negative slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was mixed against its major pairs on Friday. On the economic data front, 3Q GDP expanded 3.5%, above the 3.3% estimate compared to a prior reading of 4.2% which marks the strongest consecutive quarters of growth since 2014. U.S. personal spending increased 4% in the same period, also above its 3.3% estimate vs a gain of 3.8% last quarter. Finally, the University of Michigan consumer sentiment index weakened to 98.6 in Oct (99 estimate) compared to 99 in Sept.
The Euro was bullish against most of its major pairs with the exception of the JPY. The Germany GfK consumer confidence index was flat at 10.6 for November vs 10.5 expected.
The Australian dollar was mixed against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was about flat to $67.69. The contract was below its 20D MA (@ $71.38) and below its 50D MA (@ $69.86).
Gold was about flat to $1233.7. The precious metal was above its 20D MA (@ $1214) and above its 50D MA (@ $1205).
Copper Future (DEC 18) on Comex was about flat to 274.65c/lb. The contract was below its 20D MA (@ 278c) and above its 50D MA (@ 273.73c). In Europe, the London Metal Exchange reported its copper inventories decreased 3225 tons to 146350 tons.