US indices ended sharply higher Friday helped by stronger-than-expected U.S. jobs data. Shares in the Transportation (+2.98%), Automobiles & Components (+2.87%) and Energy (+2.51%) sectors traded higher. The S&P 500 (3,066.91) stays above its 20d moving average (2,993.15 – positive slope) and 50d moving average (2,970.60 – positive slope).
On the economic data front, the Change in Nonfarm Payrolls released at 128K, significantly exceeding the 85K consensus for October, down from a revised 180K the prior month. The Unemployment Rate came in as expected at 3.6% for October, up from 3.5% in September. The Institute for Supply Management Manufacturing rose to 48.3, below the 48.9 consensus for October, up from 47.8 in September. Markit US Manufacturing Purchasing Managers’ Index released at 51.3, just shy of the 51.5 estimate for the October final reading, slightly down from 51.5 in the prior reading. US Auto Sales fell to 16.55 million, missing 17.0 million estimate for October, down from 17.19 million the month before. On Monday, economists expect Durable Goods Orders to be in-line with the prior reading at -1.1% for the September final reading. Also, Factory Orders are anticipated to the lower at -0.5% for September, down from -0.1% the month before.
European markets are expected to start on a positive note.
Commodities / FX
LME Aluminum was steady at $1,791/ton this morning. The Shanghai Futures Exchange reported that its aluminum inventories dropped 16,101 tons on week to 278,736 tons as of November 1.
LME Copper was about flat at $5,860/ton and CME Copper Futures climbed to 266.00c/lb during China session. The Shanghai Futures Exchange reported that its copper stockpiles climbed 6,901 tons on week to 149,911 tons as of November 1.
Gold eased to $1,512/oz, while silver rebounded to $18.11/oz during China session. The net long position of gold increased by 7,171 contracts on week to 233,101 contracts as of October 29, and the net long position of silver added 5,245 contracts to 49,355 contracts, reported the Commodity Futures Trading Commission (CFTC).
The ICE Dollar Index slipped 0.2% on day to 97.12 on Friday, down for a fifth straight session. The euro edged up 0.1% to $1.1167 while the British pound was little changed at $1.2935. USD/JPY rebounded 0.2% from a three-week low to 108.19. This morning, official data showed that Australia’s retail sales grew 0.2% on month in September (+0.4% expected). AUD/USD eased to 0.6907 after the data.
WTI Crude Oil Futures eased to $56.03/bbl during Asian session. OPEC’s crude production rose 3.9% on month to 29.70M b/d in October, according to Bloomberg. Saudi Arabia’s output rebounded 14.2% to 9.88M b/d, after an attack on its biggest crude-process plant. Russia’s crude and condensate output slipped 0.3% on month to 11.23 million b/d in October, according to the government. RBC Capital Markets analyst Helima Croft said Iraq’s oil production could be in danger if oil workers in the crude-rich Basra province are increasingly joining the demonstrations and the protests are causing logistical challenges for the companies. The number of U.S. oil rigs fell to 691 as of November 1 from 696 a week ago, and the amount of oil rigs in Canada dropped to 93 from 102, according to Baker Hughes. The net long position of WTI crude rose 10,819 contracts on week to 104,675 contracts as of October 29, according to the CFTC.