U.S. indices closed higher to finish the week on Friday, boosted by shares in the Semiconductors & Semiconductor Equipment (+1.38%), Health Care Equipment & Services (+1.33%) and Transportation (+1.3%) sectors. On the economic data front, personal income rose 0.2% MoM in February (estimated 0.3%, -0.1% in January) and personal spending increased by 0.1% in January (forecasted 0.3%, -0.6% in December). The MNI Chicago PMI fell to 58.7 in March (expected 61.0) from 64.7 in February. Also, new home sales grew 4.9% MoM in February to an annualized rate of 667K units (estimated 620K). Finally, the University of Michigan sentiment index was confirmed at 98.4 in March (forecasted and previously estimated 97.8). The S&P 500 (2,834.40) stays above both its 20d moving average (2,805.50 – positive slope) and 50d moving average (2,755.61 – 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 Friday with the exception of the GBP and the JPY. On the economic data front, personal income improved by 0.2% in February (estimated 0.3%) from -0.1% in the previous month while personal spending increased by 0.1% in January (forecasted 0.3%) from a decline of 0.6% in December. The MNI Chicago PMI fell to 58.7 in March (expected 61) vs. 64.7 in February. Also, new home sales grew by 4.9% in February to 667k units (estimated 620k) from 636k units a month earlier. Finally, the University of Michigan sentiment index improved to 98.4 in March (forecasted 97.8) compared to 93.8 in the prior month.
The Euro was bearish against all of its major pairs with the exception of the GBP and the JPY. UK Parliament rejected PM Theresa May’s Brexit agreement. Separately, UK GDP growth was confirmed at 0.2% in final estimation vs 0.6% in the previous quarter. Germany retail sales increased by 0.9% in February (-1% expected) after being up by 2.8% a month earlier. Separately, Germany unemployment rate fell to 4.9% in March, a new low since 1990, from 5% in February.
The Australian dollar was higher against all of its major pairs except for the NZD and the CAD.
Commodities
After the close of Wall Street, WTI Crude Future (MAY 19) was up $0.9 to $60.18. The contract was above its 20D MA (@ $58.51) and above its 50D MA (@ $56.46).
Gold was about flat to $1292.2. The precious metal was below its 20D MA (@ $1301) and below its 50D MA (@ $1308).
Copper Future (MAY 19) on Comex was up 5.8c to 293.05c/lb. The contract was above its 20D MA (@ 290.03c) and above its 50D MA (@ 284.72c). In Europe, the London Metal Exchange reported its copper inventories decreased 1425 tons to 168525 tons.