US indices closed lower on Thursday pressured by shares in the Transportation (-1.36%), Materials (-1.1%) and Capital Goods (-1.09%) sectors. The S&P 500 (3,037.56) stays above its 20d moving average (2,987.40 – positive slope) and 50d moving average (2,967.72 – positive slope).
The House of Representatives approved a resolution to formalize the procedures of the impeachment inquiry into President Trump which also put pressure on U.S. markets.
On the economic data front, Initial Jobless Claims rose to 218K, above the 215K estimate for the week ending October 26th, up from a revised 213K last week. Continuing Claims increased to 1,690K, higher than the 1,679K estimate for the week ending October 19th, up from a revised 1,683K the prior week. Personal Income released at 0.3%, in-line with estimates for September and down from a revised 0.5% in August. Personal Spending came in at 0.2%, just shy of the 0.3% consensus for September, in-line with a revised 0.2% for the prior month. The Market News International Chicago Purchasing Managers Index fell to 43.2, missing the 48.0 estimate for October, down from 47.1 in September. On Friday, economists expect the Change in Nonfarm Payrolls to be 85K for October, which is the lowest for the year. The Unemployment Rate is expected at 3.6% for October, up from 3.5% in September. The Institute for Supply Management Manufacturing is anticipated to be higher for the month of October and the Markit US Manufacturing Purchasing Managers Index October final reading is expected to be in-line with the prior reading at 51.5. Finally, US Auto Sales are expected to release at 17.0 million for October, down from 17.19 million the month before.
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Thursday, with the exception of the AUD and CAD. On the economic data front, Initial Jobless Claims rose to 218K, above the 215K estimate for the week ending October 26th, up from a revised 213K last week. Continuing Claims increased to 1,690K, higher than the 1,679K estimate for the week ending October 19th, up from a revised 1,683K the prior week. Personal Income released at 0.3%, in-line with estimates for September and down from a revised 0.5% in August. Personal Spending came in at 0.2%, just shy of the 0.3% consensus for September, in-line with a revised 0.2% for the prior month. The Market News International Chicago Purchasing Managers Index fell to 43.2, missing the 48.0 estimate for October, down from 47.1 in September. On Friday, economists expect the Change in Nonfarm Payrolls to be 85K for October, which is the lowest for the year. The Unemployment Rate is expected at 3.6% for October, up from 3.5% in September. The Institute for Supply Management Manufacturing is anticipated to be higher for the month of October and the Markit US Manufacturing Purchasing Managers Index October final reading is expected to be in-line with the prior reading at 51.5. Finally, US Auto Sales are expected to release at 17.0 million for October, down from 17.19 million the month before.
The Euro was bearish against most of its major pairs with the exception of the AUD. In Europe, euro zone GDP growth was 0.2% in 3Q, in first reading, the same pace than in 2Q. Economists expected +0.1%. Separately, euro zone inflation rate was 0.7% in October, as expected, vs +0.8% in September. Germany retail sales were up by 0.1% in September (+0.2% expected) after a 0.1% decline a month earlier (revised from +0.5%). UK GfK consumer confidence index fell to -14 in October from -12 in September. Economists expected -13.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was down $0.9 to $54.13. The contract was below its 20D MA (@ $54.22) and below its 50D MA (@ $55.15).
Gold was up $16.7 to $1512.4. The precious metal was above its 20D MA (@ $1495) and above its 50D MA (@ $1505).
Copper Future (DEC 19) on Comex was down 4.7c to 263.95c/lb. The contract was above its 20D MA (@ 262.92c) and above its 50D MA (@ 260.91c). In Europe, the London Metal Exchange reported its copper inventories decreased 6925 tons to 263400 tons.