On the economic data front, US initial jobless claims fell by 22k to 391k (405k expected) in the week ended February 19. Also, orders for durable goods jumped 2.7% in January (+2.8% expected) from an upwardly revised -0.4% the prior month. Stocks in the semiconductors and retailing sectors traded higher while shares in the energy and household & personal products sectors were under pressure.
The 10yr yield fell 3.7bps to 3.45% (below its 20D MA). The 2yr-10yr spread rose 2.9bps to -271bps (above its 20D MA).
EUROPEAN MARKETS NEWS
The Euro STOXX 50 lost 0.2% to 2949.13. Stocks from the auto, travel & leisure and insurance sectors lost ground.
65% of STOXX 600 stocks traded lower yesterday.
20% trade above their 20D MA vs 22% Wednesday (below the 20D moving average).
77% trade above their 200D MA vs 80% Wednesday (below the 20D moving average).
The Euro Stoxx 50 Volatility index eased 0pt to 24.99.
The 10yr Bund yield fell 1bp to 3.14% (below its 20D MA). The 2yr-10yr spread fell 1bp to -160bps (above its 20D MA).
Outside the euro zone, the FTSE 100 closed down 0.06% to 5919.98. Auto & Parts, chemicals and insurance shares fell most in London yesterday. Vodafone dropped 1.37% to 173.25p and Rio Tinto 0.88% to 4170p.
In Switzerland, the SMI lost 1.61% to 6515.97. Novartis lost 4.93% to SF51.15 and UBS 1.73% to SF18.13.
European markets are expected to trade higher this morning.
FOREIGN EXCHANGE
US Dollar slid against most of its major counterparts on Thursday. On the economic data front, US initial jobless claims fell by 22,000 to 391,000 (405K expected) in the week ended February 19th. Also, orders for durable goods jumped 2.7% in January (+2.8% expected) from an upwardly revised -0.4% the prior month.
The British Pound was under pressure against its major counterparts. The Confederation of British Industry’s monthly retail-sales indicator fell to its lowest level since June.
The Mexican Peso rebounded against the greenback thus pushing below the P$12.1800 area.
Crude Oil (April contract) erased its earlier gains and came back below $98 a barrel yesterday. US inventories rose by 822,000 barrels (+1100K expected) in the week ended February 18th according to the Energy Information Administration.
Gold and Silver dropped below $1405 and $32.75 an ounce respectively.
Copper (May contract) rebounded above $4.35 a pound helped by an intraday recovery in the US stock markets.
