General Market Comment
US indices closed lower on Friday pressured by shares in the Technology Hardware & Equipment (-4.42%), Semiconductors & Semiconductor Equipment (-1.88%) and Media (-1.18%) sectors. On the economic data front, U.S. Nonfarm payrolls gained more than forecasted with 250K jobs added in Oct (200K estimate) vs a revised 118K increase last month. The unemployment rate held steady at 3.7% in Oct. The U.S. trade balance widened more than expected to $54B in Sept from $53.3B in Aug. (-53.6B estimate). The S&P 500 (2,723.06) remains at levels below both its 20d moving average (2,748.42 – negative slope) and 50d moving average (2,840.87 – negative slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was higher against all its major pairs on Friday. On the economic data front, U.S. Nonfarm payrolls gained more than forecasted with 250K jobs added in Oct (200K estimate) vs a revised 118K increase last month. The unemployment rate held steady at 3.7% in Oct. The U.S. trade balance widened more than expected to $54B in Sept from $53.3B in Aug. (-53.6B estimate).
The Euro was under pressure against most of its major pairs except for the GBP and JPY. In Europe, euro zone PMI manufacturing index was 52 in October in final estimation vs 52.1 in first one and 53.2 a month earlier.
The Australian dollar was bullish against all of its major pairs except for the USD and NZD.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was down $0.8 to $62.84. The contract was below its 20D MA (@ $68.88) and below its 50D MA (@ $69.78). The 14d RSI below 30 (25.89) indicates WTI Crude Future (DEC 18) was oversold.
Gold was about flat to $1233. The precious metal was above its 20D MA (@ $1221) and above its 50D MA (@ $1208).
Copper Future (DEC 18) on Comex was up 9.6c to 281.75c/lb. The contract was above its 20D MA (@ 276.13c) and above its 50D MA (@ 274.09c). In Europe, the London Metal Exchange reported its copper inventories increased 43700 tons to 180375 tons.