General Market Comment
US indices closed lower to finish the week on Friday. Shares in the Technology Hardware & Equipment (-2.1%), Automobiles & Components (-1.85%) and Retailing (-1.8%) sectors ended in the red zone. On the economic data front, PPI final demand improved by 0.6% MoM in October (estimated 0.2%) from 0.2% in the previous month. Wholesale inventories advanced by 0.4% MoM in September (forecasted 0.3%) compared to 0.3% a month earlier. Finally, the University of Michigan sentiment index reached a preliminary estimate of 98.3 in November (expected 98) vs. 98.6 in October. The S&P 500 (2,781.01) remains above its 20d moving average (2,740.90 – flat slope) but stays below 50d moving average (2,829.05 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Friday with the exception of the JPY. On the economic data front, PPI final demand improved by 0.6% MoM in October (estimated 0.2%) from 0.2% in the previous month. Wholesale inventories advanced by 0.4% MoM in September (forecasted 0.3%) compared to 0.3% a month earlier. Finally, the University of Michigan sentiment index reached a preliminary estimate of 98.3 in November (expected 98) vs. 98.6 in October.
The Euro was mixed against its major pairs. The UK trade deficit narrowed more than expected to £27m in Sept from £2.1B in Aug. Economists anticipated a deficit of £1.5B. Still in the UK, the GDP advanced 0.6% after expanding 0.4% a quarter ago. The growth rate matched economists expectations. Industrial production remained unchanged for the second straight month in September. Economists anticipated a 0.1% drop in output. At the same time, manufacturing output gained 0.2%, in contrast to a 0.1% fall in August and 0.1% increase expected.
The Australian dollar was lower against most of its major pairs except for the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was down $0.8 to $59.85. The contract was below its 20D MA (@ $66.07) and below its 50D MA (@ $69.08). The 14d RSI below 30 (19.59) indicates WTI Crude Future (DEC 18) was oversold.
Gold was down $14.5 to $1209.5. The precious metal was below its 20D MA (@ $1227) and below its 50D MA (@ $1210).
Copper Future (DEC 18) on Comex was down 5.7c to 267.95c/lb. The contract was below its 20D MA (@ 274.59c) and below its 50D MA (@ 274.05c). In Europe, the London Metal Exchange reported its copper inventories decreased 1275 tons to 171050 tons.