General Market Comment
US indices closed higher on Tuesday lifted by shares in the Household & Personal Products (+1.77%), Food, Beverage & Tobacco (+1.3%) and Telecommunication Services (+1.13%) sectors. On the economic data front, the NFIB small business optimism index fell to 107.2 in June (estimated 106.9) compared to 107.8 in May. The S&P 500 (2,793.84) remains above its 20d moving average (2,751.05 – flat slope) and 50d moving average (2,728.73 – positive slope). European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was mixed against its pairs on Tuesday. On the economic data front, the NFIB small business optimism index fell to 107.2 in June (estimated 106.9) compared to 107.8 in May.
The Euro was also mixed against its major pairs. In Europe, Germany ZEW investor confidence index for expectations plunged to -24.7 in July, its lowest since August 2012, vs -16.1 the month before and -18.9 expected. UK industrial production fell 0.4% in May after declining 1% in April (revised from -0.8%). Economists anticipated a 0.5% rise. Separately, UK trade balance deficit narrowed to £2.79B in May from £3.1B in April.
The Australian dollar was bullish against its major pairs with exception of the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was about flat to $74.06. The contract was above its 20D MA (@ $69.82) and above its 50D MA (@ $69.13).
Gold was about flat to $1255.8. The precious metal was below its 20D MA (@ $1265) and below its 50D MA (@ $1287).
Copper Future (SEP 18) on Comex was down 1.7c to 283.3c/lb. The contract was below its 20D MA (@ 302.35c) and below its 50D MA (@ 308.84c). The 14d RSI below 30 (24.34) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories increased 75 tons to 270625 tons.