US indices closed slightly higher on Wednesday lifted by shares in the Household & Personal Products (+0.98%), Media (+0.94%) and Technology Hardware & Equipment (+0.85%) sectors. On the economic data front, MBA Mortgage Applications fell 11.9% for the week ended October 18th, down from a rise of 0.5% the prior week, marking a low not reached since late 2016. The U.S. Federal Housing Finance Agency house price index added 0.2% on month in August (+0.3% expected, +0.4% in July). The S&P 500 (3,004.52) remains above its 20d moving average (2,960.46 – positive slope) and 50d moving average (2,950.36 – positive slope).
On Thursday, economists expect the durable good orders to declined 0.8% on month in September, new home sales to drop 0.7% on month, and the Markit U.S. manufacturing purchasing managers’ index to post 50.7 for October. Initial jobless claims for the week ended October 19 are anticipated to be lower at 215,000.
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Wednesday, with the exception of the NZD, CAD and GBP. On the economic data front, MBA Mortgage Applications fell 11.9% for the week ended October 18th, down from a rise of 0.5% the prior week, marking a low not reached since late 2016. The Federal Housing Finance Agency House Price Index month over month change rose 0.2% which was slightly lower than the 0.3% estimate for August, down from a rise of 0.4% in July. On Thursday, economists expect the Durable Good Orders September preliminary reading, Markit US Manufacturing Purchasing Managers’ Index October preliminary reading and New Home Sales for September. Finally, Initial Jobless Claims are expected slightly higher for the week ending October 19th and Continuing Claims are expected slightly lower for the week ending October 12th.
The Euro was bearish against most of its major pairs with the exception of the AUD, CHF and JPY. In Europe, the euro-zone consumer confidence index fell to -7.6 in October in first reading from -6.5 a month earlier. Economists anticipated -6.8.
After the close of Wall Street, WTI Crude Future (DEC 19) was up $1.4 to $55.87. The contract was above its 20D MA (@ $53.76) and above its 50D MA (@ $55.04). The US Department of Energy reported that, for the week ended 18 October, crude oil inventories fell 1699k barrels compared to the previous week.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was up $1.4 to $55.87. The contract was above its 20D MA (@ $53.76) and above its 50D MA (@ $55.04). The US Department of Energy reported that, for the week ended 18 October, crude oil inventories fell 1699k barrels compared to the previous week.
Gold was up $4.1 to $1491.8. The precious metal was below its 20D MA (@ $1493) and below its 50D MA (@ $1506).
Copper Future (DEC 19) on Comex was up 3.5c to 266.8c/lb. The contract was above its 20D MA (@ 259.87c) and above its 50D MA (@ 259.99c). In Europe, the London Metal Exchange reported its copper inventories decreased 825 tons to 269525 tons.