General Market Comment
US indices closed mixed on Friday. Shares in the Semiconductors & Semiconductor Equipment (-2.15%), Retailing (-1.1%) and Media (-0.83%) sectors closed in the red while shares in the Real Estate (+1.36%), Utilities (+1.31%) and Telecommunication Services (+1.27%) sectors gained a bit of strength. On the economic data front, industrial production improved by 0.1% MoM in October (estimated 0.2%) from an increase of 0.2% in September. In other news, capacity utilization slightly increased to 78.4% in October (forecasted 78.2%) compared to 78.5% a month earlier. The S&P 500 (2,736.27) remains above its 20d moving average (2,726.40 – negative slope) but stays below 50d moving average (2,812.69 – negative slope).
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday. On the economic data front, industrial production improved by 0.1% MoM in October (estimated 0.2%) from an increase of 0.2% in September. In other news, capacity utilization slightly increased to 78.4% in October (forecasted 78.2%) compared to 78.5% a month earlier.
The Euro was bullish against all of its major pairs. The euro zone CPI was up by 0.2% in October, as expected and at the same pace than in September.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was about flat to $56.81. The contract was below its 20D MA (@ $62.79) and below its 50D MA (@ $67.97). The 14d RSI below 30 (20.87) indicates WTI Crude Future (DEC 18) was oversold.
Gold was up $8.1 to $1221.5. The precious metal was below its 20D MA (@ $1223) and above its 50D MA (@ $1211).
Copper Future (MAR 19) on Comex was up 3.9c to 280.2c/lb. The contract was above its 20D MA (@ 275.1c) and above its 50D MA (@ 276.95c). In Europe, the London Metal Exchange reported its copper inventories decreased 5425 tons to 161025 tons.