General Market Comment 07.03.19

U.S. indices closed lower on Thursday, led by shares in the Retailing (-1.72%), Food & Staples Retailing (-1.69%) and Automobiles & Components (-1.34%) sectors. On the economic data front, initial jobless claims declined to 223K in week ended March 2 (vs 225K estimated) from 226K in the previous week and continuing claims fell to 1.755M in week ended February 23 (vs 1.772M expected) from 1.805M a week earlier. The S&P 500 (2,748.93) breaks below its 20d moving average (2,767.41 – positive slope) but remains above its 50d moving average (2,666.09 – positive slope).


European markets are expected to start on a negative note.

Foreign Exchange

The US dollar was bullish against all of its major pairs on Thursday with the exception of the JPY. On the economic data front, initial jobless claims declined to 223k in week ended March 2nd (estimated 225k) from 226k in the previous week while continuing claims decreased to 1.755M in week ended February 23rd (forecasted 1.772M) compared to 1.805M a week earlier. In other news, the Bloomberg consumer comfort index improved to 62.1 in week ended March 3rd vs. 61 in the prior week. 

The Euro was bearish against all of its major pairs. The euro zone GDP growth was confirmed at +0.2% in 4Q, the same pace than in 3Q. According to Halifax, UK house prices bounced by 5.9% in February (+0.1% expected) after a 3% drop a month earlier. The European Central Bank held the main refinancing and deposit facility rates steady while changing guidance as they see rates on hold at least through 2019, several months later than previously anticipated.

The Australian dollar was mixed against its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (APR 19) was about flat to $56.56. The contract was above its 20D MA (@ $55.61) and above its 50D MA (@ $53.04).

Gold was about flat to $1285.7. The precious metal was below its 20D MA (@ $1313) and below its 50D MA (@ $1302).

Copper Future (MAY 19) on Comex was about flat to 291.15c/lb. The contract was above its 20D MA (@ 288.25c) and above its 50D MA (@ 277c). In Europe, the London Metal Exchange reported its copper inventories increased 3200 tons to 120075 tons.