General Market Comment
US indices closed higher to finish the week on Friday, boosted by shares in the Banks (+2.48%), Telecommunication Services (+2.33%) and Insurance (+1.89%) sectors. On the economic data front, the Empire Manufacturing index jumped to 8.8 in February (estimated 7) from 3.9 in the previous month. Import price index declined by 0.5% MoM in January (forecasted -0.2%) vs. -1% in December. Industrial production declined by 0.6% MoM in January (expected 0.1%) compared to 0.1% a month earlier. Finally, the University of Michigan sentiment index jumped to 95.5 in a preliminary estimate in February (estimated 93.7) from 91.2 in January. The S&P 500 (2,775.60) stays above its 20d moving average (2,698.10 – positive slope) and 50d moving average (2,615.74 – flat slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday. On the economic data front, the Empire Manufacturing index jumped to 8.8 in February (estimated 7) from 3.9 in the previous month. Import price index declined by 0.5% MoM in January (forecasted -0.2%) vs. -1% in December. Industrial production declined by 0.6% MoM in January (expected 0.1%) compared to 0.1% a month earlier. Finally, the University of Michigan sentiment index jumped to 95.5 in a preliminary estimate in February (estimated 93.7) from 91.2 in January.
The Euro was bearish against all of its major pairs. The EU27 new car registrations were down by 4.6% in January after a 8.4% drop a month earlier. Separately, the euro zone trade balance excess narrowed to E15.6B in December (E15.7B expected) from E15.8B a month ago. The UK retail sales were up by 1.2% in January (+0.2% anticipated) after a 1% decline in December.
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 (MAR 19) was up $1.3 to $55.75. The contract was above its 20D MA (@ $53.61) and above its 50D MA (@ $51.22).
Gold was up $8.8 to $1321.4. The precious metal was above its 20D MA (@ $1306) and above its 50D MA (@ $1285).
Copper Future (MAR 19) on Comex was up 4.5c to 281.85c/lb. The contract was above its 20D MA (@ 275.76c) and above its 50D MA (@ 271.55c). In Europe, the London Metal Exchange reported its copper inventories decreased 2350 tons to 143175 tons.