General Market Comment 11.04.19

U.S. indices closed mixed on Thursday. Stocks in the Capital Goods (+1.12%), Insurance (+0.8%) and Diversified Financials (+0.56%) sectors traded higher while stocks in the Health Care Equipment & Services (-1.65%), Pharmaceuticals, Biotechnology & Life Sciences (-0.87%) and Technology Hardware & Equipment (-0.5%) sectors traded lower. On the economic data front, Initial jobless claims fell to 196K (210K estimated) in the week ended April 6, the lowest level since 1969, from 201K in the previous week. Continuing claims declined to 1.713M (1.735M estimated) in the week ended March 20 from 1.726M in the prior week. Also, PPI rose 2.2% YoY in March (+1.9% expected) and core PPI grew 2.4% (as expected). The S&P 500 (2,888.32) stays above both its 20d moving average (2,848.51 – positive slope) and 50d moving average (2,797.21 – 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 fell to 196K (210K estimate) in the week ended April 6th from a revised 201K in the previous week. It is the lowest reading since the week ended October 4th 1969. Continuing claims declined to 1713K (1735K estimate) in the week ended March 20th compared to a revised 1726K prior. US PPI gained 0.6% in March (0.3% estimate) compared to a gain of 0.1% in the prior month.

The Euro was Bullish against all of its major pairs with the exception of the USD. In Europe, the German CPI growth was 1.3% in March YoY, as expected, after a 1.5% rise in February.

The Australian dollar was under pressure against all of its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (MAY 19) was down $0.9 to $63.68. The contract was above its 20D MA (@ $61.14) and above its 50D MA (@ $58.15).

Gold was down $16 to $1292.1. The precious metal was below its 20D MA (@ $1302) and below its 50D MA (@ $1307).

Copper Future (MAY 19) on Comex was down 3.3c to 289.3c/lb. The contract was below its 20D MA (@ 290.29c) and above its 50D MA (@ 288.61c). In Europe, the London Metal Exchange reported its copper inventories decreased 3100 tons to 194425 tons.