U.S. indices closed lower on Thursday as the Dow plunged by appx 285 points. Shares in the Energy (-3.13%), Technology Hardware & Equipment (-1.96%) and Capital Goods (-1.81%) sectors were under pressure. On the economic data front, initial jobless claims slightly decreased to 211K in week ended May 18 (estimated 215K) from 212K in the prior week while continuing claims increased to 1.676M in week ended May 11 (forecasted 1.666M) compared to 1.664M a week earlier. In other news, the Markit U.S. Manufacturing PMI dropped to 50.6 in May (expected 52.6) from 52.6 a month earlier. Finally, new home sales fell 6.9% MoM to 673K units in April (estimated 675k). The S&P 500 (2,822.24) stays below both its 20d moving average (2,8839.99 – negative slope) and 50d moving average (2,873.59 – flat 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 with the exception of the CAD and the GBP. On the economic data front, initial jobless claims slightly decreased to 211k in week ended May 18th (estimated 215k) from 212k in the prior week while continuing claims increased to 1.676M in week ended May 11th (forecasted 1.666M) compared to 1.664M a week earlier. In other news, the Bloomberg consumer comfort improved to 60.3 in week ended May 19th vs. 59.9 in the previous week. Markit US manufacturing PMI reached a preliminary estimate of 50.6 in May (expected 52.6) from 52.6 a month earlier. Finally, new home sales fell by 6.9% MoM at 673k units in April (estimated 675k) compared to 723k in March.
The Euro was bullish against most of its major pairs with the exception of the NZD, the CHF and the JPY. The euro zone PMI manufacturing index slid to 47.7 in May in first estimation (48.1 expected) from 47.9 a month earlier. The PMI services index fell to 52.5 (53 anticipated) from 52.8 in April. The German GDP growth was confirmed at 0.4% for 1Q19 vs 0% in 4Q18. Separately, the IFO business climate index dropped to 97.9 in May (99.1 expected) from 99.2 in April.
The Australian dollar was lower against all of its major pairs except for the CAD, the GBP and the USD.
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