US indices pushed higher on Friday lifted by shares in the Insurance (+2.32%), Technology Hardware & Equipment (+2.04%) and Banks (+1.94%) sectors. On the economic data front, the US Trade Balance came in at -$54.9B which was wider than the -$54.5B estimate for August compared to -$54B in July. US Nonfarm Payrolls reached 136K missing the 145K estimate for September down from the revised 168K in August. The US Unemployment Rate came in at 3.5% beating the 3.7% estimate for September compared to 3.7% the previous month, this marks the lowest rate of unemployment in the last 5 decades. On Monday, no major economic news in expected. The S&P 500 (2952.01) trades below its 20d moving average (2,976.74 – negative slope) but breaks above 50d moving average (2,942.37 – negative slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Friday. On the economic data front, the US Trade Balance came in at -$54.9B which was wider than the -$54.5B estimate for August compared to -$54B in July. US Nonfarm Payrolls reached 136K missing the 145K estimate for September down from the revised 168K in August. The US Unemployment Rate came in at 3.5% beating the 3.7% estimate for September compared to 3.7% the previous month, this marks the lowest rate of unemployment in the last 5 decades. On Monday, no major economic news in expected.
The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CHF. In Europe, Research firm Markit published September German Construction PMI at 50.1 versus 46.3 in August.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 19) was about flat to $52.84. The contract was below its 20D MA (@ $56.35) and below its 50D MA (@ $55.62).
Gold was about flat to $1504.2. The precious metal was above its 20D MA (@ $1500) and above its 50D MA (@ $1500).
Copper Future (DEC 19) on Comex was up 1.1c to 256.4c/lb. The contract was below its 20D MA (@ 260.69c) and below its 50D MA (@ 260.42c). In Europe, the London Metal Exchange reported its copper inventories decreased 1825 tons to 288425 tons.