General Market Comment
US indices closed mixed on Monday. Shares in the Capital Goods (-1.19%), Food, Beverage & Tobacco (-0.86%) and Utilities (-0.64%) sectors closed on a negative note while shares in the Banks (+1.95%), Transportation (+1.02%) and Diversified Financials (+0.94%) sectors gained traction. On the economic data front, the Chicago Fed national activity index increased to 0.43 in June (estimated 0.25) from a revised -0.45 in May. In addition, existing homes sales decreased to 5.38M in June (expected 5.44M) compared to a revised 5.41M in the prior month. The S&P 500 (2,806.98) remains above both its 20d moving average (2,764.97 – positive slope) and 50d moving average (2,753.00 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Monday. On the economic data front, the Chicago Fed national activity index increased to 0.43 in June (estimated 0.25) from a revised -0.45 in May. In addition, existing homes sales decreased to 5.38M in June (expected 5.44M) compared to a revised 5.41M in the prior month.
The Euro was bearish against its major pairs with exception of the AUD and the NZD. Eurozone consumer confidence index remained unchanged at -0.6 in July in first estimation vs -0.7 expected.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 18) was about flat to $67.78. The contract was below its 20D MA (@ $69.81) and below its 50D MA (@ $68.39).
Gold was down $7.3 to $1224.7. The precious metal was below its 20D MA (@ $1245) and below its 50D MA (@ $1272).
Copper Future (SEP 18) on Comex was down 1.3c to 274.35c/lb. The contract was below its 20D MA (@ 284.67c) and below its 50D MA (@ 302.7c). In Europe, the London Metal Exchange reported its copper inventories decreased 625 tons to 254700 tons.