US indices closed mixed on Thursday. Shares in the Commercial & Professional Services (+1.22%), Real Estate (+0.84%) and Software & Services (+0.54%) sectors edged higher while shares in the Technology Hardware & Equipment (-1.41%), Automobiles & Components (-0.44%) and Telecommunication Services (-0.38%) sectors were under pressure.
On the economic data front, Initial Jobless Claims rose to 225K, above the 215K estimate for the week ending November 9th, up from 211K the week before. Continuing Claims came in at 1683K,for the week ending November 2nd, down from a revised 1693K from the prior week. The Producers Price Index Final Demand month over month change rose 0.4%, above the 0.3% estimate for October, up from a decline of 0.3% the prior month.
Fed chairman Powell spoke for a second time this week at the United States House Budget Committee, he stated that he sees no current sign of a slowing economy, however the US-China trade deal along with sluggish global growth has put strain on business investment and the Federal Budget is on an unsustainable path with high and rising debt in the long term.
On Friday, economists expect Empire Manufacturing to release at 6.0 for November, compared to 4.0 the month before. Import Price Index month over month change and Retail Sales Advance month over month change are both expected lower for October. Finally, Industrial Production month over month change for October is expected to be in-line with September, at -0.4%.
European markets are expected to open on a negative note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Thursday, with the exception of the NZD, AUD and CAD. On the economic data front, Initial Jobless Claims rose to 225K, above the 215K estimate for the week ending November 9th, up from 211K the week before. Continuing Claims came in at 1683K,for the week ending November 2nd, down from a revised 1693K from the prior week. The Producers Price Index Final Demand month over month change rose 0.4%, above the 0.3% estimate for October, up from a decline of 0.3% the prior month. Fed chairman Powell spoke for a second time this week at the United States House Budget Committee, he stated that he sees no current sign of a slowing economy, however the US-China trade deal along with sluggish global growth has put strain on business investment and the Federal Budget is on an unsustainable path with high and rising debt in the long term. On Friday, economists expect Empire Manufacturing to release at 6.0 for November, compared to 4.0 the month before. Import Price Index month over month change and Retail Sales Advance month over month change are both expected lower for October. Finally, Industrial Production month over month change for October is expected to be in-line with September, at -0.4%.
The Euro was bullish against most of its major pairs with the exception of the CHF, GBP and JPY. In Europe, German third quarter Gross Domestic Product unexpectedly rose 0.1% quarter on quarter while a -0.1% decline was expected. Yet, second quarter growth was revised lower from -0.1% to -0.2%. Eurozone third quarter Gross Domestic Product rose 0.2% quarter on quarter as expected and in the second quarter. France’s third quarter Jobless Rate unexpectedly jumped from 8.5% to 8.6% while a decline to 8.4% was expected. Also, U.K. October Retail Sales only rose 3.1% year on year (+3.7% on year expected).
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was about flat to $56.87. The contract was above its 20D MA (@ $55.98) and above its 50D MA (@ $55.57). The US Department of Energy reported that, for the week ended 8 November, crude oil inventories increased 2219k barrels compared to the previous week.
Gold was up $7.3 to $1470.9. The precious metal was below its 20D MA (@ $1486) and below its 50D MA (@ $1494).
Copper Future (MAR 20) on Comex was down 1.3c to 263.8c/lb. The contract was below its 20D MA (@ 267.44c) and below its 50D MA (@ 263.88c). In Europe, the London Metal Exchange reported its copper inventories decreased 2700 tons to 219025 tons.