General Market Comment
U.S. indices closed lower on Thursday, dragged by shares in the Automobiles & Components (-3.51%), Semiconductors & Semiconductor Equipment (-2.16%) and Energy (-2.13%) sectors. On the economic data front, initial jobless claims fell to 234K in week ended February 2 (estimated 221K) from 253K in the previous week, and continuing claims dropped to 1.736M in week ended January 26 (forecasted 1.733M) from 1.778M a week earlier. The S&P 500 (2,706.05) stays above its 20d moving average (2,658.15 – positive slope) and 50d moving average (2,614.76 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was mixed against its major pairs on Thursday. On the economic data front, initial jobless claims reached 234k in week ended February 2nd (estimated 221k) from 253k in the previous week while continuing claims decreased to 1.736M in week ended January 26th (forecasted 1.733M) compared to 1.778M a week earlier. In other news, the Bloomberg consumer comfort index advanced to 58.2 in week ended February 3rd vs. 57.4 the prior week.
The Euro was bearish against most of its major pairs with the exception of the NZD and the CAD. The European Union lowered its GDP growth forecast for the euro zone at 1.3% for 2019 vs 1.9% previously, and to 1.6% for 2020 vs 1.7% initially anticipated. The German industrial production fell 0.4% in December (-0.8% expected) after a 1.3% drop a month earlier. The Bank of England kept its main benchmark interest rate at 0.75%, as expected, but reaffirmed its intention to raise it in the future despite Brexit uncertainties. Also, the BoE lowered its GDP growth forecast for the UK at 1.2% for 2019 and 1.5% for 2020, vs a previous estimate of +1.7% for those two years.
The Australian dollar was higher against most of its major pairs with the exception of the GBP and the JPY.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was down $1.4 to $52.64. The contract was below its 20D MA (@ $53.15) and above its 50D MA (@ $51.03).
Gold was up $3.2 to $1309.8. The precious metal was above its 20D MA (@ $1299) and above its 50D MA (@ $1276).
Copper Future (MAR 19) on Comex was about flat to 283.1c/lb. The contract was above its 20D MA (@ 271.69c) and above its 50D MA (@ 271.44c). In Europe, the London Metal Exchange reported its copper inventories decreased 150 tons to 149400 tons.