U.S. indices closed lower on Friday even though the market rebounded off the lows of the day. Shares in the Energy (-1.95%), Retailing (-0.74%) and Consumer Services (-0.57%) sectors were under pressure. On the economic data front, housing starts advanced to 1.23M units in January (estimated 1.195M) from 1.037M in December while building permits rose to 1.345M (forecasted 1.287M) from 1.326M. In other news, nonfarm payrolls increased to 20K in February (expected +180K, +311K January), while the jobless rate fell to 3.8% (estimated 3.9%) from 4.0%. The S&P 500 (2,743.07) stays below its 20d moving average (2,769.26 – positive slope) but remains above its 50d moving average (2,673.93 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday with the exception of the GBP. On the economic data front, housing starts advanced to 1.23M units in January (estimated 1.195M) from 1.037M in December while building permits reached 1.345M in January (forecasted 1.287M) compared to 1.326M a month earlier. In other news, the change in nonfarm payrolls dropped to 20k in February (expected 180k) vs. 311k in the previous month. Finally, the unemployment rate decreased to 3.8% in February (estimated 3.9%) from 4% in January.
The Euro was bullish against all of its major pairs except for the NZD. German factory orders dropped by 2.6% in January (+0.5% expected), their biggest slide in seven months, after a 0.9% increase in December (revised from -1.6%). French industrial production increased by 1.3% in January (+0.1% anticipated) after being flat in December (revised from +0.8%).
The Australian dollar was higher against all of its major pairs with the exception of the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was down $0.6 to $56.02. The contract was above its 20D MA (@ $55.76) and above its 50D MA (@ $53.3).
Gold was up $13.8 to $1299.5. The precious metal was below its 20D MA (@ $1312) and below its 50D MA (@ $1302).
Copper Future (MAY 19) on Comex was about flat to 290.05c/lb. The contract was above its 20D MA (@ 288.57c) and above its 50D MA (@ 277.47c). In Europe, the London Metal Exchange reported its copper inventories decreased 3350 tons to 116725 tons.