U.S. indices closed lower on Friday on fears of an inverted yield curve, pressured by shares in the Consumer Durables & Apparel (-3.96%), Banks (-3.68%) and Materials (-2.99%) sectors. On the economic data front, the Markit U.S. manufacturing PMI declined to 52.5 in a preliminary estimate in March (estimated 53.5) from 53.0 a month earlier and services PMI decreased to 54.8 (forecasted 55.5) from 56.0 a month earlier. In other news, wholesale inventories advanced by 1.2% MoM in January (expected 0.1%, +1.1% in December). Also, existing home sales jumped 11.8% MoM in February to 5.51M units (estimated 5.10M) from 4.93M in the previous month. Finally, the monthly budget posted its biggest monthly deficit on record at $234B in February (forecasted $227B) vs. $215B in January. The S&P 500 (2,800.71) stays above both its 20d moving average (2,798.93 – flat slope) and 50d moving average (2,734.21 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Friday with the exception of the GBP and the JPY. On the economic data front, Markit US manufacturing PMI declined to 52.5 in a preliminary estimate in March (estimated 53.5) from 53 a month earlier. Markit US services PMI decreased to 54.8 in a preliminary estimate in March (forecasted 55.5) compared to 56 a month earlier while Markit US composite PMI declined to 54.3 in a preliminary estimate in March vs. 55.5 in the prior month. In other news, wholesale inventories advanced by 1.2% MoM in January (expected 0.1%) from 1.1% in December. Also, existing home sales jumped by 11.8% in February to 5.51M units (estimated 5.1M) compared to 4.93M in the previous month. Finally, the monthly budget posted its biggest monthly deficit on record at $234B in February (forecasted $227B) vs. $215.2B in January.
The Euro was bearish against all of its major pairs. Euro-zone PMI manufacturing index fell to 47.6 in March (49.5 expected) from 49.3 in February. It was its lowest level in six years. PMI services index decreased to 52.7, as anticipated, from 52.8. German PMI manufacturing index plunged to 44.7 in March, the lowest since August 2012, from 47.6. It was anticipated to be 48.
The Australian dollar was lower against its major pairs except for the EUR.
Commodities
WTI Crude Future (MAY 19) is down $0.7 to $59.3 this morning. The contract is above its 20D MA (@ $57.79) and above its 50D MA (@ $55.8).
Gold is about flat to $1313.1. The precious metal is above its 20D MA (@ $1304) and above its 50D MA (@ $1306).
Copper Future (MAY 19) on Comex is down 2.1c to 288.55c/lb. The contract is below its 20D MA (@ 292.07c) and above its 50D MA (@ 282.61c). In Europe, the London Metal Exchange reported today its copper inventories decreased 1125 tons to 175325 tons.