U.S. indices closed lower on Thursday, pressured by shares in the Semiconductors & Semiconductor Equipment (-1.84%), Automobiles & Components (-1.64%) and Technology Hardware & Equipment (-0.97%) sectors. On the economic data front, the U.S. trade deficit amounted to $50.0B in March (estimated $50.1B). Also, PPI rose 2.2% YoY in April (vs +2.3% expected, +2.2% in March) and wholesale inventories fell 0.1% MoM in March (expected to remain flat). In other news, initial jobless claims slightly dropped to 228K in week ended May 4 (estimated 220kK) from 230K in the prior week while continuing claims rose to 1.684M in week ended April 27th (forecasted 1.67M) from 1.671M a week earlier. The S&P 500 (2,870.72) stays below its 20d moving average (2,914.56 – flat slope) but remains above 50d moving average (2,860.03 – positive slope).
European markets are expected to start on a flat note.<\/p>\n\n\n\n
Foreign Exchange<\/strong><\/p>\n\n\n\n The US dollar was bearish against all of its major pairs on Thursday. On the economic data front, the U.S. trade deficit increased slightly in March to $50B (estimated $50.1B) from $49.3B in the previous year. Also, PPI final demand improved by 0.2% MoM in April (forecasted 0.3%) compared to 0.6% a month ago while wholesale inventories declined by 0.1% MoM in March (expected to remain flat) from a flat level a month earlier. In other news, initial jobless claims slightly declined to 228k in week ended May 4th (estimated 220k) vs. 230k in the prior week while continuing claims reached 1.684M in week ended April 27th (forecasted 1.67M) from 1.671M a week earlier.
The Euro was bullish against all of its major pairs with the exception of the JPY and the CHF. According to RICS, UK house price balance was -23% in April (-22% expected) vs -23% in March.
The Australian dollar was lower against all of its major pairs.<\/p>\n\n\n\n