General Market Comment
US indices tumbled on Monday as President Trump is planning investment restrictions against Chinese companies. Shares in the Semiconductors & Semiconductor Equipment (-3.29%), Consumer Services (-2.88%) and Retailing (-2.43%) sectors were under pressure. On the economic data front, the Chicago national activity index decreased to -0.15 in May (estimated 0.3) from 0.42 previously. In addition, new home sales increased to 689K in May (expected 667K) from 646K in April. Finally, Dallas Fed manufacturing activity increased to 36.5 in June (anticipated 24.9) from 26.8 in May. The S&P 500 (2,717.07) is below its 20d moving average (2,755.16 – positive slope) and 50d moving average (2,716.04 – positive slope).
European markets are expected to open on a positive note.
Foreign Exchange
The US dollar was mixed against its major pairs on Monday. On the economic data front, the Chicago national activity index decreased to -0.15 in May (estimated 0.3) from 0.42 previously. In addition, new home sales increased to 689K in May (expected 667K) from 646K in April. Finally, Dallas Fed manufacturing activity increased to 36.5 in June (anticipated 24.9) from 26.8 in May.
The Euro was bullish against all of its major pairs with the exception of NZD and AUD. Germany IFO business climate index fell to 101.8 for June, as expected, from 102.3 a month earlier (revised from 102.2). The sub-index for expectations was flat at 98.6 vs 98 anticipated.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was down $0.6 to $68.01. The contract was above its 20D MA (@ $66.13) and above its 50D MA (@ $67.9).
Gold was down $3.4 to $1266. The precious metal was below its 20D MA (@ $1289) and below its 50D MA (@ $1303).
Copper Future (SEP 18) on Comex was down 4.1c to 300.75c/lb. The contract was below its 20D MA (@ 316.17c) and below its 50D MA (@ 313.66c). In Europe, the London Metal Exchange reported its copper inventories decreased 450 tons to 305525 tons.