General Market Comment
US indices closed higher on Thursday lifted by shares in the Semiconductors & Semiconductor Equipment (+3.86%), Materials (+3.02%) and Consumer Durables & Apparel (+2.76%) sectors. On the economic data front, U.S. jobless claims fell 2000 to 214K (212K estimate) in the week ending Oct 27th compared to a revised 216K prior. Continuing claims for the week ending Oct 20 came in at 1631K (1640K estimate) vs a revised 1638K in the prior period. Markit US manufacturing PMI fell to 55.7 (55.8 estimate) in Oct compared to 55.9 in Sept. Finally, the ISM manufacturing index fell to 57.7 in Oct, below the 59 estimate compared to 59.8 in Sept. The S&P 500 (2,740.37) remains at levels below both its 20d moving average (2,756.55 – negative slope) and 50d moving average (2,843.54 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was under pressure against all its major pairs on Thursday. On the economic data front, U.S. jobless claims fell 2000 to 214K (212K estimate) in the week ending Oct 27th compared to a revised 216K prior. Continuing claims for the week ending Oct 20 came in at 1631K (1640K estimate) vs a revised 1638K in the prior period. Markit US manufacturing PMI fell to 55.7 (55.8 estimate) in Oct compared to 55.9 in Sept. Finally, the ISM manufacturing index fell to 57.7 in Oct, below the 59 estimate compared to 59.8 in Sept.
The Euro was mixed against its major pairs. In Europe, Bank of England kept its main benchmark interest rate at 0.75%, as expected, and stuck to its asset purchase target of £435B. Separately, according to Nationwide, UK home prices were flat in October after being up 0.2% a month earlier. Economists anticipated a 0.2% rise. UK PMI manufacturing index fell to 51.1 in October from 53.6 a month earlier (revised from 53.8). Economists anticipated 53.
The Australian dollar pushed higher against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was down $1.8 to $63.47. The contract was below its 20D MA (@ $69.44) and below its 50D MA (@ $69.86). The 14d RSI below 30 (27.31) indicates WTI Crude Future (DEC 18) was oversold.
Gold was up $18.4 to $1233.1. The precious metal was above its 20D MA (@ $1220) and above its 50D MA (@ $1207).
Copper Future (DEC 18) on Comex was up 6c to 271.85c/lb. The contract was below its 20D MA (@ 275.85c) and below its 50D MA (@ 273.8c). In Europe, the London Metal Exchange reported its copper inventories decreased 950 tons to 136675 tons.