U.S. indices closed higher on Thursday, led by shares in the Semiconductors & Semiconductor Equipment (+3.13%), Technology Hardware & Equipment (+3.01%) and Software & Services (+1.98%) sectors. On the economic data front, initial jobless claims declined to 221K in week ended March 16 (estimated 225K) from 230K in the previous week and continuing claims decreased to 1.75M in week ended March 9 (expected 1.77M) from 1.777M a week earlier. Also, the Philadelphia Federal Business Outlook Index jumped to 13.7 in March (forecasted 4.8) from -4.1 in February. Finally, the Leading Index rose 0.2% MoM in February (expected +0.1%). The S&P 500 (2,854.88) stays above both its 20d moving average (2,798.52 – positive slope) and 50d moving average (2,729.89 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Thursday. On the economic data front, initial jobless claims declined to 221k in week ended March 16th (estimated 225k) from 230k in the previous week while continuing claims decreased to 1.75M in week ended March 9th (expected 1.77M) compared to 1.777M a week earlier. Also, the Philadelphia federal business outlook jumped to 13.7 in March (forecasted 4.8) from -4.1 in February while the Bloomberg consumer comfort index increased to 61.5 in week ended March 17th vs. 60.8 a week earlier. Finally, the Leading Index improved by 0.2% in February (expected 0.1%) after remaining unchanged in January.
The Euro was bearish against all of its major pairs except for the CAD and the GBP. The euro zone consumer confidence index fell to -7.2 in March (-7.1 expected) from -7.4 a month earlier. The Bank of England kept its main benchmark interest rate at 0.75%, as anticipated, and stuck to its £435B asset purchase target. Separately, the UK retail sales increased by 0.2% in February (-0.4% expected) after a 1.1% rise in January.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (MAY 19) was about flat to $59.84. The contract was above its 20D MA (@ $57.71) and above its 50D MA (@ $55.68).
Gold was down $3.3 to $1309.2. The precious metal was above its 20D MA (@ $1305) and above its 50D MA (@ $1306).
Copper Future (MAY 19) on Comex was down 1.1c to 291c/lb. The contract was below its 20D MA (@ 292.4c) and above its 50D MA (@ 282.18c). In Europe, the London Metal Exchange reported its copper inventories decreased 2825 tons to 176450 tons.