General Market Comment
The U.S. markets were closed on Thursday for Thanksgiving holiday. The S&P 500 (2,649.93) remains below its 20d moving average (2,717.89 – flat slope) and 50d moving average (2,799.26 – negative slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Thursday with the exception of the NZD and the AUD. The US markets were closed on Thursday to celebrate Thanksgiving. On Wednesday, the US indices closed mixed. Shares in the Utilities (-1.48%), Food, Beverage & Tobacco (-1.17%) and Pharmaceuticals, Biotechnology & Life Sciences (-1.1%) sectors closed lower while shares in the Consumer Durables & Apparel (+1.72%), Energy (+1.58%) and Automobiles & Components (+1.43%) sectors gained momentum. On the economic data front, initial jobless claims slightly increased to 224k in week ended November 17th (estimated 215k) from 221k in the previous week. Continuing claims diminished to 1.668M in week ended November 10th (forecasted 1.65M) compared to 1.67M a week earlier. MBA mortgage applications declined by 0.1% in week ended November 16th from a fall of 3.2% in the previous week. In other news, the Bloomberg consumer comfort index increased to 61.3 in week ended November 18th vs. 60.5 a week earlier. The Leading Index improved by 0.1% in October, in-line with estimates, from an increase of 0.6% in September. Also, existing home sales advanced by 1.4% MoM to 5.22M units in October (expected 5.2M) from 5.15M a month earlier. Finally, the University of Michigan sentiment index declined to 97.5 in November (estimated 98.3) compared to 98.6 in October.
The Euro was bullish against most of its major pairs except for the GBP and the CAD. The euro-zone consumer confidence index fell to -3.9 in November in first reading (-3 expected) from -2.7 a month earlier.
The Australian dollar was lower against most of its major pairs except for the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was down $0.8 to $53.85. The contract was below its 20D MA (@ $60.36) and below its 50D MA (@ $66.85). The 14d RSI below 30 (22.47) indicates WTI Crude Future (JAN 19) was oversold.
Gold was about flat to $1227.4. The precious metal was above its 20D MA (@ $1221) and above its 50D MA (@ $1214).
Copper Future (MAR 19) on Comex was about flat to 281.4c/lb. The contract was above its 20D MA (@ 275.48c) and above its 50D MA (@ 277.99c). In Europe, the London Metal Exchange reported its copper inventories increased 50 tons to 143325 tons.