General Market Comment
US indices closed higher on Tuesday, led by shares in the Materials (+1.32%), Semiconductors & Semiconductor Equipment (+1.12%) and Automobiles & Components (+1%) sectors. On the economic data front, industrial production MoM increased by 0.6% in June (estimated 0.5%) from a revised -0.5% in May. In addition, capacity utilization increased to 78%, below the estimate of 78.3% in June from a revised 77.7% in the prior month. The S&P 500 (2,809.55) remains above its 20d moving average (2,755.25 – positive slope) and 50d moving average (2,743.73 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against its pairs on Tuesday with exception of the NZD. On the economic data front, industrial production MoM increased by 0.6% in June (estimated 0.5%) from a revised -0.5% in May. In addition, capacity utilization increased to 78%, below the estimate of 78.3% in June from a revised 77.7% in the prior month.
The Euro was mixed against its major pairs. The UK unemployment rate held steady at a record low of 4.2% during the three months ending May which was in line with market expectations. Average earnings rose by 2.5%. which was also in line with expectations.
The Australian dollar was also mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was about flat to $68. The contract was below its 20D MA (@ $70.71) and below its 50D MA (@ $69.3).
Gold was down $13.2 to $1227.9. The precious metal was below its 20D MA (@ $1253) and below its 50D MA (@ $1279).
Copper Future (SEP 18) on Comex was down 1.6c to 274.8c/lb. The contract was below its 20D MA (@ 291.02c) and below its 50D MA (@ 305.58c). The 14d RSI below 30 (26.98) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories increased 2525 tons to 259725 tons.