General Market Comment
US indices closed higher to finish the week on Friday, lifted by shares in the Semiconductors & Semiconductor Equipment (+1.64%), Utilities (+1.51%) and Real Estate (+1.31%) sectors. On the economic data front, personal income improved by 0.3% in August (estimated 0.4%) from an increase of 0.3% in July while personal spending advanced by 0.3% in August, in-line with estimates, vs. 0.4% a month earlier. In other news, the Chicago PMI diminished to 60.4 in September (expected 62) compared to 63.6 in August. Finally, the University of Michigan sentiment index reached 100.1 in September (forecasted 100.6) vs. 96.2 a month ago. The S&P 500 (2,913.98) remains above its 20d moving average (2,901.50 – flat slope) and 50d moving average (2,868.18 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Friday with the exception of the NZD, the AUD and the CAD. On the economic data front, personal income improved by 0.3% in August (estimated 0.4%) from an increase of 0.3% in July while personal spending advanced by 0.3% in August, in-line with estimates, vs. 0.4% a month earlier. In other news, the Chicago PMI diminished to 60.4 in September (expected 62) compared to 63.6 in August. Finally, the University of Michigan sentiment index reached 100.1 in September (forecasted 100.6) vs. 96.2 a month ago.
The Euro was bearish against all of its major pairs. Euro-zone CPI growth was 2.1% in September YoY, as expected, vs +2% a month earlier. German unemployment rate was 5.1% in September vs 5.2% in August and 5.2% anticipated. UK GDP growth was confirmed at 0.4% in 2Q in final estimation vs +0.2% in the previous quarter.
The Australian dollar was higher against most of its major pairs with the exception of the CAD.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was up $1.4 to $73.5. The contract was above its 20D MA (@ $69.9) and above its 50D MA (@ $68.11).
Gold was up $8.7 to $1191.6. The precious metal was below its 20D MA (@ $1198) and below its 50D MA (@ $1203).
Copper Future (DEC 18) on Comex was up 2.1c to 280.35c/lb. The contract was above its 20D MA (@ 270.9c) and above its 50D MA (@ 273.29c). In Europe, the London Metal Exchange reported its copper inventories decreased 7500 tons to 202400 tons.