U.S. indices pushed higher on Thursday with the S&P 500 posting a record close lifted by shares in the Energy (+2.21%), Capital Goods (+1.95%) and Software & Services (+1.74%) sectors. On the economic data front, the current account deficit posted $130.4B in 1Q (estimated $124.3B) compared with $143.9B in the previous quarter. Initial jobless claims fell to 216K for week ending June 15 (estimated 220K) from 222K in the prior week and continuing claims dropped to 1.662M in week ending June 8 (estimated 1.680M) from 1.699M in the previous week. Lastly, the Leading Index was flat MoM in May (estimated +0.1%). The S&P 500 (2,954.18) stays above its 20d moving average (2,849.22 – positive slope) and its 50d moving average (2,876.78 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was under pressure against all of its major pairs on Thursday. On the economic data front, the Current Account Balance reached a $130.4B deficit in the first quarter of the year (estimated $124.3B) compared with $143.9B in the previous quarter. Initial Jobless Claims decreased to 216K for week ending June 15 (estimated 220K) vs. 222K for the previous week. Next, continuing claims reached 1.662M in week ending June 8 (estimated 1.68M) compared with 1.699M in the previous week. Separately, the Bloomberg Consumer Comfort Index tipped up to 61.8 in June compared with 61.6 in the previous month. Lastly, the Leading Index remained flat in May (estimated 0.1%) vs. 0.1% growth in the prior month.
The Euro was bearish against all of its major pairs with the exception of the GBP and USD. In Europe, the euro-zone consumer confidence index fell to -7.2 in June in first reading (-6.5 expected) vs. -6.5 a month earlier. The Bank of England kept its main benchmark interest rate at 0.75% and stuck to its £435B asset purchase target. The institution warned expecting zero growth in the UK in 2H and forecasts 2019 inflation rate will be below its 2% target. Separately, the UK retail sales were down by 0.5% in May, as anticipated, after a 0.1% decline the month before (revised from a stability).
The Australian dollar was mixed against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 19) was up $3.3 to $57.22. The contract was above its 20D MA (@ $54.61) and below its 50D MA (@ $59.83).
Gold was up $27.1 to $1387.5. The precious metal was above its 20D MA (@ $1325) and above its 50D MA (@ $1299). The 14d RSI above 70 (80.44) indicates gold was overbought.
Copper Future (SEP 19) on Comex was up 3.1c to 271.1c/lb. The contract was above its 20D MA (@ 266.47c) and below its 50D MA (@ 276.92c). In Europe, the London Metal Exchange reported its copper inventories decreased 1325 tons to 247050 tons.