General Market Comment 28.02.19

U.S. indices closed lower on Thursday, dragged by shares in the Materials (-1.27%), Technology Hardware & Equipment (-1.1%) and Energy (-0.97%) sectors. On the economic data front, initial jobless claims slightly increased to 225K in week ended February 23 (estimated 220K) from 217K a week earlier and continuing claims rose to 1.805M in week ended February 16 (expected 1.737M) from 1.726M in the prior week. In other news, annualized GDP grew 2.6% QoQ in 4Q (expected +2.2%, +3.4% in 3Q) Finally, the Chicago PMI jumped to 64.7 in February (estimated 57.5) from 56.7 in January. The S&P 500 (2,784.49) stays above its 20d moving average (2,752.33 – positive slope) and 50d moving average (2,637.62 – positive 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 CHF. On the economic data front, initial jobless claims slightly increased to 225k in week ended February 23rd (estimated 220k) from 217k a week earlier while continuing claims reached 1.805M in week ended February 16th (forecasted 1.737M) compared to 1.726M in the prior week. In other news, annualized GDP increased by 2.6% QoQ in 4Q (expected 2.2%) vs. 3.4% in the previous quarter. Also, personal consumption improved by 2.8% in 4Q (estimated 3%) from 3.5% in the prior quarter. Finally, the Chicago PMI jumped to 64.7 in February (forecasted 57.5) compared to 56.7 in January while the Bloomberg consumer comfort index improved to 61 in week ended February 24th vs. 59.6 in the prior week. 

The Euro was bullish against most of its major pairs except for the CHF. The German CPI was up by 1.6% in February YoY (+1.5% expected) vs +1.4% in January. French GDP growth was 0.3% in 4Q in first estimation, as expected and as in 3Q. According to Nationwide, UK house prices fell by 0.1% in February (+0.3% anticipated) after a 0.1% rise a month earlier. 

The Australian dollar was lower against all of its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (APR 19) was about flat to $57.22. The contract was above its 20D MA (@ $55.16) and above its 50D MA (@ $52.2).

Gold was down $6.6 to $1313.2. The precious metal was below its 20D MA (@ $1319) and above its 50D MA (@ $1300).

Copper Future (MAY 19) on Comex was down 1.8c to 294.5c/lb. The contract was above its 20D MA (@ 285.44c) and above its 50D MA (@ 274.82c). In Europe, the London Metal Exchange reported its copper inventories decreased 2450 tons to 128475 tons.