General Market Comment
US indices closed higher on Thursday after U.S. Treasury Secretary Steven Mnuchin discussed the possibility of lifting some or all tariffs imposed on Chinese imports. Shares in the Capital Goods (+1.79%), Materials (+1.68%) and Transportation (+1.45%) sectors lifted the market higher. On the economic data front, initial jobless claims decreased to 213k in week ended January 12th (estimated 220k) from 216k in the previous week. Continuing claims increased to 1.737M in week ended January 5th (forecasted 1.734M) compared to 1.719M in the prior week. In other news, the Philadelphia Federal Business Outlook jumped to 17 in January (expected 9.5) from 9.1 in December. Finally, the Bloomberg consumer comfort index slightly declined to 58.1 in week ended January 13th vs. 58.5 a week earlier. The S&P 500 (2,635.96) stays above its 20d moving average (2,526.40 – positive slope) and crosses above 50d moving average (2,635.96 – 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 Thursday with the exception of the AUD and the GBP. On the economic data front, initial jobless claims decreased to 213k in week ended January 12th (estimated 220k) from 216k in the previous week. Continuing claims increased to 1.737M in week ended January 5th (forecasted 1.734M) compared to 1.719M in the prior week. In other news, the Philadelphia Federal Business Outlook jumped to 17 in January (expected 9.5) from 9.1 in December. Finally, the Bloomberg consumer comfort index slightly declined to 58.1 in week ended January 13th vs. 58.5 a week earlier.
The Euro was bullish against most of its major pairs with the exception of the AUD and the GBP. The euro zone CPI growth was confirmed at +1.6% in December, as expected, vs a 1.9% rise a month earlier. According to RICS, UK house price balance was -19 in December (-13 anticipated) vs -11 in November.
The Australian dollar was higher against most of its major pairs except for the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (FEB 19) was about flat to $52.21. The contract was above its 20D MA (@ $48.37) and above its 50D MA (@ $51.86).
Gold was about flat to $1292. The precious metal was above its 20D MA (@ $1283) and above its 50D MA (@ $1251).
Copper Future (MAR 19) on Comex was up 2.5c to 269.85c/lb. The contract was above its 20D MA (@ 265.79c) and below its 50D MA (@ 271.89c). In Europe, the London Metal Exchange reported its copper inventories decreased 50 tons to 134975 tons