General Market Comment 23.12.19

US indices closed up on Friday, lifted by the Telecommunication Services (+1.18%), Semiconductors & Semiconductor Equipment (+1.16%) and Pharmaceuticals, Biotechnology & Life Sciences (+1.03%) sectors. On the economic data front, GDP remained at 2.1%, as expected for the third quarter, in-line with the prior reading. Personal income increased 0.5% for November, more than expected, up from a revised 0.1% last month. Personal spending rose 0.4% in November, as anticipated, up from a rise of 0.3% in October.

On Monday, economists expect Durable Goods Orders to rise 1.5% for the November preliminary reading and New Home Sales are anticipated to fall to 730K for November.


European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was flat to bullish against most of its major pairs on Friday, with the exception of the AUD. On the economic data front, GDP remained at 2.1%, as expected for the third quarter, in-line with the prior reading. Personal income increased 0.5% for November, more than expected, up from a revised 0.1% last month. Personal spending rose 0.4% in November, as anticipated, up from a rise of 0.3% in October. On Monday, economists expect Durable Goods Orders to rise 1.5% for the November preliminary reading and New Home Sales are anticipated to fall to 730K for November.

The Euro was bearish against all of its major pairs. In Europe, the euro-zone consumer confidence index fell to -8.1 in December in first reading vs -7 expected and -7.2 a month earlier. In Germany, the GfK Consumer Confidence Index for January was released at 9.6, below the 9.8 expected. The U.K. Office for National Statistics has released final readings of third quarter GDP at +1.1% (vs +1.0% on year expected), current account at 15.9 billion pounds deficit (vs 15.5 billion pounds deficit expected) and November public sector net borrowing excluding banking groups at 5.6 billion pounds (vs 6.1 billion pounds expected). Moreover, U.K. Chancellor of the Exchequer Javid has appointed Andrew Bailey as next Bank of England Governor. He will succeed to Mark Carney in February 2020.

The Australian dollar was bullish against all of its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (FEB 20) was down $0.8 to $60.36. The contract was above its 20D MA (@ $58.7) and above its 50D MA (@ $56.9).

Gold was about flat to $1477.7. The precious metal was above its 20D MA (@ $1469) and above its 50D MA (@ $1477).

Copper Future (MAR 20) on Comex was down 2.5c to 280.1c/lb. The contract was above its 20D MA (@ 273.26c) and above its 50D MA (@ 268.99c). In Europe, the London Metal Exchange reported its copper inventories decreased 3050 tons to 151400 tons.