General Market Comment
US indices closed mixed on Friday. Shares in the Energy (-3.26%), Technology Hardware & Equipment (-1.74%) and Media (-1.2%) sectors were under pressure while shares in the Food & Staples Retailing (+0.91%), Automobiles & Components (+0.36%) and Household & Personal Products (+0.32%) sector gained traction. On the economic data front, Markit US manufacturing PMI slightly lowered in a preliminary estimate to 55.4 in November (estimated 55.7) from 55.7 in the previous month. Markit US services PMI decreased to 54.4 in a preliminary estimate in November (forecasted 55) compared to 54.8 in October while Markit US composite PMI declined to 54.4 in a preliminary estimate in November vs. 54.9 a month earlier. The S&P 500 (2,632.56) remains below its 20d moving average (2,714.24 – flat slope) and 50d moving average (2,793.83 – negative slope).
European markets are expected to open on a positive note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Friday. On the economic data front, Markit US manufacturing PMI slightly lowered in a preliminary estimate to 55.4 in November (estimated 55.7) from 55.7 in the previous month. Markit US services PMI decreased to 54.4 in a preliminary estimate in November (forecasted 55) compared to 54.8 in October while Markit US composite PMI declined to 54.4 in a preliminary estimate in November vs. 54.9 a month earlier.
The Euro was bearish against all of its major pairs. The euro zone PMI manufacturing index fell to 51.5 in November in first reading (52 expected) from 52 a month earlier. The index for services slid to 53.1 (53.6 anticipated) from 53.7 in October.
The Australian dollar was higher against most of its major pairs except for the JPY and the USD.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was down $4.2 to $50.39. The contract was below its 20D MA (@ $60.19) and below its 50D MA (@ $66.78). The 14d RSI below 30 (18.12) indicates WTI Crude Future (JAN 19) was oversold.
Gold was down $4.4 to $1223.1. The precious metal was above its 20D MA (@ $1221) and above its 50D MA (@ $1214).
Copper Future (MAR 19) on Comex was down 2.3c to 278.55c/lb. The contract was above its 20D MA (@ 275.33c) and above its 50D MA (@ 277.94c). In Europe, the London Metal Exchange reported its copper inventories decreased 3775 tons to 139550 tons.