US indices closed down on Wednesday, pressured by the Food & Staples Retailing (-0.94%), Transportation (-0.85%) and Diversified Financials (-0.67%) sectors. On the economic data front, the Mortgage Bankers Association’s Mortgage Applications fell 5.0% for the week ending December 13th, down from a rise of 3.8% the prior week.
On Thursday, economists expect Initial Jobless Claims to fall to 225K for the week ending December 14th, down from 252K the week before. Continuing Claims is anticipated to rise to 1,676K for the week ending December 7th, up from 1,667K the prior week. The Leading Index is expected to increase 0.1% for November, up from a decline of 0.1% in October. Finally, Existing Home Sales are expected to slightly decrease to 5.44 million homes for November, down from 5.46 million homes the month before.
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was flat to bullish against most of its major pairs on Wednesday, with the exception of the CAD and CHF. On the economic data front, the Mortgage Bankers Association’s Mortgage Applications fell 5.0% for the week ending December 13th, down from a rise of 3.8% the prior week. On Thursday, economists expect Initial Jobless Claims to fall to 225K for the week ending December 14th, down from 252K the week before. Continuing Claims is anticipated to rise to 1,676K for the week ending December 7th, up from 1,667K the prior week. The Leading Index is expected to increase 0.1% for November, up from a decline of 0.1% in October. Finally, Existing Home Sales are expected to slightly decrease to 5.44 million homes for November, down from 5.46 million homes the month before.
The Euro was bearish against most of its major pairs with the exception of the GBP. In Europe, the European Commission has posted final readings of November Consumer Price Index at +1.0% on year, as expected. Germany’s IFO Institute has reported its indexes for December slightly above expectations (business climate at 96.30 vs 95.5 expected, current assessment at 98.80 vs 98.1 expected and expectations at 93.80 vs 93.0 expected). The German Federal Statistical Office has released November Producer Price Index at -0.7% (-0.6% on year expected). U.K. Consumer Inflation data for November was released at +1.5% (vs +1.4% on year expected).
The Australian dollar was flat to bullish against most of its major pairs with the exception of the CAD and CHF.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 20) was about flat to $60.97. The contract was above its 20D MA (@ $58.48) and above its 50D MA (@ $56.7). The US Department of Energy reported that, for the week ended 13 December, crude oil inventories fell 1085k barrels compared to the previous week.
Gold was about flat to $1474.7. The precious metal was above its 20D MA (@ $1467) and below its 50D MA (@ $1478).
Copper Future (MAR 20) on Comex was about flat to 281.1c/lb. The contract was above its 20D MA (@ 271.6c) and above its 50D MA (@ 268.12c). In Europe, the London Metal Exchange reported its copper inventories decreased 1400 tons to 159425 tons.