US indices closed slightly positive on Monday after erasing morning losses and posting a reversal day. Shares in the Software & Services (+1.08%), Semiconductors & Semiconductor Equipment (+0.86%) and Banks (+0.84%) sectors helped push U.S. indices higher while the Energy (-1.55%) sector was under pressure. On the economic data front, the Markit manufacturing PMI increased to 55.4 in a final estimate in June (estimated 54.6) from 56.4 previously. In addition, construction spending MoM increased by 0.4% in May (expected +0.5%) from 0.9% in April. Finally, the ISM manufacturing index increased to 60.2 in June (anticipated 58.5) from 58.7 in the prior month. The S&P 500 (2,726.71) is still below its 20d moving average (2,754.33 – negative) but remains above 50d moving average (2,718.60 – positive).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bullish against all of its pairs on Monday. On the economic data front, the Markit manufacturing PMI increased to 55.4 in a final estimate in June (estimated 54.6) from 56.4 previously. In addition, construction spending MoM increased by 0.4% in May (expected +0.5%) from 0.9% in April. Finally, the ISM manufacturing index increased to 60.2 in June (anticipated 58.5) from 58.7 in the prior month.
The Euro was bearish against its major pairs with exception of the AUD and the NZD. Eurozone PMI manufacturing index was 54.9 in June in final estimation vs 55 in first one and 55.5 the month before. UK PMI manufacturing index slightly increased to 54.4 in June from 54.3 in May. It was expected at 54.
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 $73.56. The contract was above its 20D MA (@ $67.77) and above its 50D MA (@ $68.52).
Gold was down $4.7 to $1248.4. The precious metal was below its 20D MA (@ $1277) and below its 50D MA (@ $1294). The 14d RSI below 30 (25.19) indicates gold was oversold.
Copper Future (SEP 18) on Comex was down 2.2c to 294.45c/lb. The contract was below its 20D MA (@ 313.05c) and below its 50D MA (@ 311.87c). The 14d RSI below 30 (28.61) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 4650 tons to 289875 tons.