General Market Comment
US indices closed lower Tuesday in a short trading session before the Independence day holiday pressured by shares in the Semiconductors & Semiconductor Equipment (-1.92%), Technology Hardware & Equipment (-1.41%) and Banks (-1.38%) sectors. On the economic data front, factory orders increased by 0.4% in May, estimated staying flat compared to -0.4% in the prior month. Durable goods orders decreased by 0.4% (estimated -0.5%) in May from -1% in the previous month. The S&P 500 (2,713.22) is still below both its 20d moving average (2,752.55 – negative slope) and 50d moving average (2,7189.46 – positive slope). European markets are expected to open on a negative note.
Foreign Exchange
The US dollar was bearish against all of its pairs on Tuesday. On the economic data front, factory orders increased by 0.4% in May, estimated staying flat compared to -0.4% in the prior month. Durable goods orders decreased by 0.4% (estimated -0.5%) in May from -1% in the previous month.
The Euro was bearish against its major pairs with exception of the USD. Euro-zone retail sales were flat in May after decreasing 0.1% in April (revised from +0.1%). Economists anticipated a 0.1% rise. Separately, euro-zone PPI rose 0.8% in May after being flat a month earlier. Economists anticipated a 0.5% increase. UK PMI construction index was up to 53.1 in June (52.5 expected) from 52.5 in May.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was about flat to $74.15. The contract was above its 20D MA (@ $68.21) and above its 50D MA (@ $68.64). The 14d RSI above 70 (70.75) indicates WTI Crude Future (AUG 18) was overbought.
Gold was up $10.8 to $1252.8. The precious metal was below its 20D MA (@ $1275) and below its 50D MA (@ $1293).
Copper Future (SEP 18) on Comex was down 2.5c to 291.9c/lb. The contract was below its 20D MA (@ 311.56c) and below its 50D MA (@ 311.4c). The 14d RSI below 30 (25.8) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 3350 tons to 286525 tons.