General Market Comment
US indices closed mixed on Thursday. Shares in the Food, Beverage & Tobacco (-2.07%), Insurance (-1.7%) and Diversified Financials (-1.17%) sectors closed lower while shares in the Media (+0.48%), Real Estate (+0.45%) and Technology Hardware & Equipment (+0.44%) sectors gained traction. On the economic data front, PPI final demand declined by 0.1% MoM in January (estimated 0.1%) vs. a decrease of 0.1% in December. In other news, initial jobless claims increased to 239k in week ended February 9th (forecasted 225k) from 235k in the previous week while continuing claims increased to 1.773M in week ended February 2nd (expected 1.74M) compared to 1.736M in the prior week. Also, retail sales fell by 1.2% MoM in December (forecasted 0.1%) vs. 0.1% in November. Finally, the Bloomberg consumer comfort index increased to 60 in week ended February 10th from 58.2 a week earlier. The S&P 500 (2,745.73) stays above its 20d moving average (2,691.11 – positive slope) and 50d moving average (2,616.04 – flat slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Thursday except for the CAD and the GBP. On the economic data front, PPI final demand declined by 0.1% MoM in January (estimated 0.1%) vs. a decrease of 0.1% in December. In other news, initial jobless claims increased to 239k in week ended February 9th (forecasted 225k) from 235k in the previous week while continuing claims increased to 1.773M in week ended February 2nd (expected 1.74M) compared to 1.736M in the prior week. Also, retail sales fell by 1.2% MoM in December (forecasted 0.1%) vs. 0.1% in November. Finally, the Bloomberg consumer comfort index increased to 60 in week ended February 10th from 58.2 a week earlier.
The Euro was bullish against most of its major pairs except for the NZD, the CHF and the JPY. The euro-zone GDP growth was +0.2% in 4Q in first estimation, as expected, and at the same pace than a quarter earlier. The German GDP was flat in 4Q in first reading (+0.1% anticipated) after a 0.2% decline in the previous quarter.
The Australian dollar was lower against most of its major pairs except for the CAD, the GBP and the USD.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was up $0.6 to $54.5. The contract was above its 20D MA (@ $53.45) and above its 50D MA (@ $51.18).
Gold was up $6.3 to $1312.5. The precious metal was above its 20D MA (@ $1304) and above its 50D MA (@ $1284).
Copper Future (MAR 19) on Comex was about flat to 277.05c/lb. The contract was above its 20D MA (@ 275.05c) and above its 50D MA (@ 271.42c). In Europe, the London Metal Exchange reported its copper inventories decreased 2375 tons to 145525 tons