U.S. stock indexes closed lower on Thursday pressured by shares in the Real Estate (-1.39%), Household & Personal Products (-1.35%) and Consumer Durables & Apparel (-0.77%) sectors.
U.S. President Donald Trump mentioned that China is not stepping up in trade negotiations, while the Wall Street Journal reported that China’s chief trade negotiator Liu He has invited his U.S. counterparts for more talks.
The U.S. Labor Department reported that initial jobless claims amounted to 227,000 for the week ended November 16 (218,000 expected, 227,000 in the prior week). Existing home sales rose to an annualized rate of 5.46 million units in October (5.49 million units expected, 5.36 million units in September).
Later today, the Markit US Manufacturing Purchasing Managers’ Index is expected to post 51.4 (preliminary reading) for November (51.3 in October). The University of Michigan Consumer Sentiment Index is expected to be 95.7 in November.
European markets are expected to open on a positive note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Thursday, with the exception of the CAD. On the economic data front, Initial Jobless Claims released unchanged at 227K, above the 218K estimate for the week ending November 16th, in-line with a revised 227K for the prior week. Continuing Claims rose to 1,695K, more than the 1,683K consensus for the week ending November 9th, up from a revised 1,692K the week before. The Leading Index fell by -0.1%, as expected for October, compared to a revised decline of -0.2% the month before. Existing Home Sales rose to 5.46 million homes, below the 5.49 million estimate for October, up from a revised 5.36 million homes in September. On Friday, economists expect the Markit US Manufacturing Purchasing Managers’ Index to increase to 51.4 for the November preliminary reading, slightly up from 51.3 in the prior reading. Also, the University of Michigan Consumer Sentiment Index November final reading is expected to be in-line with the prior reading at 95.7.
The Euro was bullish against most of its major pairs with the exception of the CAD, JPY and USD. In Europe, OECD 2020 Euro Area Gross Domestic Product growth was revised higher to 1.1% from 1.0% announced in September. Yet, Germany forecast was cut from 0.6% to 0.4%. UK was increased from 0.9% to 1.0%. The Consumer Confidence Index in Eurozone for November edged slightly higher at -7.2 from -7.6 in October and -7.3 expected.
The Australian dollar was flat to bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 20) was up $1.4 to $58.38. The contract was above its 20D MA (@ $56.61) and above its 50D MA (@ $55.54).
Gold was down $7.2 to $1464.5. The precious metal was below its 20D MA (@ $1481) and below its 50D MA (@ $1491).
Copper Future (MAR 20) on Comex was down 2.2c to 263.85c/lb. The contract was below its 20D MA (@ 267.2c) and below its 50D MA (@ 263.98c). In Europe, the London Metal Exchange reported its copper inventories increased 1125 tons to 222075 tons.