General Market Comment
US indices closed mixed on Friday. Shares in the Retailing (-2.54%), Food & Staples Retailing (-1.57%) and Automobiles & Components (-0.74%) sectors closed lower while shares in the Energy (+1.83%), Semiconductors & Semiconductor Equipment (+1.49%) and Insurance (+1.06%) sectors gained momentum. On the economic data front, change in nonfarm payrolls reached 304k jobs in January (estimated 165k) from 222k in the previous month. The unemployment rate slightly increased to 4% in January (forecasted 3.9%) vs. 3.9% in December. In other news, the Markit US manufacturing PMI remained unchanged in January, as expected, while ISM manufacturing improved to 56.6 in January (estimated 54) from 54.3 in December. Finally, the University of Michigan sentiment index increased to 91.2 in January (forecasted 90.7) vs. 90.7 in the prior month. The S&P 500 (2,706.53) stays above its 20d moving average (2,625.19 – positive slope) and 50d moving average (2,609.06 – flat slope).
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Friday with the exception of the EUR and the CAD. On the economic data front, change in nonfarm payrolls reached 304k jobs in January (estimated 165k) from 222k in the previous month. The unemployment rate slightly increased to 4% in January (forecasted 3.9%) vs. 3.9% in December. In other news, the Markit US manufacturing PMI remained unchanged in January, as expected, while ISM manufacturing improved to 56.6 in January (estimated 54) from 54.3 in December. Finally, the University of Michigan sentiment index increased to 91.2 in January (forecasted 90.7) vs. 90.7 in the prior month.
The Euro was bullish against most of its major pairs except for the CAD. The euro-zone PMI manufacturing index was 50.5 in January in final estimation, or a four-year low, as anticipated and vs 51.4 a month earlier. Separately, the euro-zone CPI growth was 1.4% in January YoY, a low since April, as anticipated and vs 1.6% in December. The German PMI manufacturing index was 49.7 in January in final estimation vs 49.9 in first one and 51.5 in December. The UK PMI manufacturing index fell to 52.8 in January vs 54.2 in December. It was expected to be 53.5.
The Australian dollar was lower against most of its major pairs with the exception of the JPY.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was up $1.5 to $55.32. The contract was above its 20D MA (@ $52.4) and above its 50D MA (@ $50.96).
Gold was down $3.2 to $1318. The precious metal was above its 20D MA (@ $1295) and above its 50D MA (@ $1269).
Copper Future (MAR 19) on Comex was down 1.3c to 277.1c/lb. The contract was above its 20D MA (@ 268.27c) and above its 50D MA (@ 271.17c). In Europe, the London Metal Exchange reported its copper inventories increased 750 tons to 149950 tons