General Market Comment
US indices closed mixed on Monday. Shares in the Energy (-1.18%), Food, Beverage & Tobacco (-0.81%) and Commercial & Professional Services (-0.8%) sectors closed lower while shares in the Banks (+3.14%), Insurance (+0.76%) and Diversified Financials (+0.73%) sectors gained traction. On the economic data front, the empire manufacturing index decreased to 22.6 in July (estimated 21) from 25 in the prior month. Retail sales increased by 0.5% in June, meeting the estimate, from revised +1.3% in the prior month. The S&P 500 (2,798.43) remains above its 20d moving average (2,753.46 – flat slope) and 50d moving average (2,740.81 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against its pairs on Monday with exception of the AUD. On the economic data front, the empire manufacturing index decreased to 22.6 in July (estimated 21) from 25 in the prior month. Retail sales increased by 0.5% in June, meeting the estimate, from revised +1.3% in the prior month.
The Euro was bullish against its major pairs with exception of the NZD and the CHF. The Eurozone trade balance narrowed to E16.9B in May (E18.6B estimate) compared to a revised E18B in April. UK’s Rightmove house price index retreated 0.1% on a monthly basis in June, marking its largest drop in 7 months. In the previous month, the Rightmove house price index had recorded a rise of 0.4%.
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 $3 to $68.02. The contract was below its 20D MA (@ $70.6) and below its 50D MA (@ $69.33).
Gold was about flat to $1241.1. The precious metal was below its 20D MA (@ $1255) and below its 50D MA (@ $1281).
Copper Future (SEP 18) on Comex was about flat to 276.75c/lb. The contract was below its 20D MA (@ 292.94c) and below its 50D MA (@ 306.3c). The 14d RSI below 30 (24.77) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 1525 tons to 257200 tons.