U.S. indices closed higher on Friday led by shares in the Semiconductors & Semiconductor Equipment (+2.83%), Banks (+2.54%) and Technology Hardware & Equipment (+2.18%) sectors. On the economic data front, the University of Michigan Sentiment index dropped to its second lowest level since the inauguration of Donald Trump at 92.1 in August in preliminary estimates (expected 97.0), from 98.4 in July. Also, housing starts declined to an annualized rate of 1.19M in July (estimated 1.26M) from 1.24M in June. The S&P 500 (2,888.68) trades below its 20d moving average (2,939.66 – negative slope) and below its 50d moving average (2,944.79 – flat slope).
European markets are expected to start on a positive note.<\/p>\n\n\n\n
Foreign Exchange<\/strong><\/p>\n\n\n\n The US dollar was mixed against all of its major pairs on Friday. On the economic data front, the University of Michigan Sentiment index reached its second lowest level since the inauguration of Donald Trump at 97 in August in preliminary estimates (97 estimated) vs. 98.4 in the prior month. Housing starts reached 1.19M in July (estimated 1.26M) vs. 1.24M in the prior month.
The Euro was mixed against all of its major pairs. In Europe, according to Der Spiegel, Germany would be ready to raise its debt if recession hits the country. On the statistic front, euro-zone trade balance excess narrowed to E17.9B in June from E19.6B in May (revised from E20.2B). Economists anticipated a E18.5B excess.
The Australian dollar was bullish against all its major pairs with the exception of the GBP and CAD.<\/p>\n\n\n\n