U.S. indices closed lower on Thursday pressured by shares in the Automobiles & Components (-3.11%), Semiconductors & Semiconductor Equipment (-1.62%) and Energy (-1.16%) sectors. On the economic data front, Durable Goods Orders increased 2.0% MoM in June (estimated +0.7%, -2.3% in May). Initial Jobless Claims fell to 206K in week ending July 20 (estimated 218K) from 216K in the prior week. Wholesale Inventories rose 0.2% MoM in June (estimated +0.5%, +0.4% in May). The S&P 500 (3,003.67) stays above its 20d moving average (2,987.04 – positive slope) and its 50d moving average (2,911.99 – positive slope).
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was bullish against all its major pairs on Thursday with the exception of the EUR. On the economic data front, Durable Goods Orders increased by 2% in preliminary estimates in June (estimated 0.7%) compared with a 2.3% decrease in the previous month. Initial Jobless Claims reached 206K in week ending July 20 (estimated 218K) vs. 216K in the prior week. Wholesale Inventories tipped up by 0.2% in preliminary estimates in June (estimated 0.5) vs. a 0.4 rise in the prior month.
The Euro was bullish against all of its major pairs with the exception of the AUD. In Europe, the ECB kept its main benchmark interest at 0%, as anticipated. ECB President, Mario Draghi, said that a significant monetary stimulus is needed but also still sees risk of recession in the euro zone as pretty low. Germany IFO business confidence index for expectations fell to 92.2 in July, the lowest since 2009, from 94 in June. It was expected to be flat.
The Australian dollar was bearish against all of its major pairs with the exception of the CHF and JPY.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 19) was about flat to $55.85. The contract was below its 20D MA (@ $57.78) and below its 50D MA (@ $57.18).
Gold was down $11.6 to $1414.3. The precious metal was above its 20D MA (@ $1414) and above its 50D MA (@ $1364).
Copper Future (SEP 19) on Comex was about flat to 270.75c/lb. The contract was above its 20D MA (@ 269.58c) and above its 50D MA (@ 268.87c). In Europe, the London Metal Exchange reported its copper inventories increased 475 tons to 295475 tons.