U.S. indices closed mixed in a choppy trading session on Thursday. Shares in the Banks (+0.95%), Food & Staples Retailing (+0.68%) and Consumer Durables & Apparel (+0.5%) sectors traded higher while shares in the Health Care Equipment & Services (-1.03%), Materials (-0.7%) and Commercial & Professional Services (-0.7%) sectors were under pressure. On the economic data front, Initial Jobless Claims fell to 209K in week ending August 17 (estimated 216K) from 221K in the prior week. The Markit U.S. Manufacturing PMI tipped down to 49.9 in August (estimated 50.5) from 50.4 in July. The Leading Index rose 0.5% MoM in July (estimated +0.3%). The S&P 500 (2,922.95) breaks above its 20d moving average (2,922.55 – negative slope) but remains below its 50d moving average (2,947.71 – flat 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 Thursday with the exception of the GBP and JPY. On the economic data front, Initial Jobless Claims reached 209K in week ending August 17 (estimated 216K) vs. 221K in the prior week. The Markit US Manufacturing PMI tipped down to 49.9 in preliminary estimates in August (estimated 50.5) vs. 50.4 in the prior week. The Leading Index increased by 0.5% in July (estimated 0.3%) vs a 0.1% decrease in June.
The Euro was bullish against all of its major pairs with the exception of the GBP and JPY. In Europe, the euro-zone PMI manufacturing index was up to 47 in August vs 46.5 a month earlier and 46.2 expected. Separately, the PMI services index increased to 53.4 vs 53.2 a month ago and 53 anticipated. The euro-zone consumer confidence index was -7.1 in August in first reading vs -6.6 in July. It was expected to be -7.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 19) was about flat to $55.43. The contract was above its 20D MA (@ $55.28) and below its 50D MA (@ $56.33).
Gold was down $3.7 to $1499. The precious metal was above its 20D MA (@ $1479) and above its 50D MA (@ $1434).
Copper Future (DEC 19) on Comex was down 2.4c to 256.75c/lb. The contract was below its 20D MA (@ 261.7c) and below its 50D MA (@ 266.6c). In Europe, the London Metal Exchange reported its copper inventories decreased 1325 tons to 328250 tons.