General Market Comment
US indices closed higher on Tuesday, after news that the US is in talks with China to settle the trade conflict. Shares in the Capital Goods (+2.57%), Real Estate (+1.89%) and Pharmaceuticals, Biotechnology & Life Sciences (+1.58%) sectors ended in the green zone. On the economic data front, personal income increased by 0.4% in June, meeting the estimate, compared to +0.4% a month ago while personal spending also increased by 0.4%, meeting the expectation, from a revised +0.5% in May. Finally, the Conference Board consumer confidence index increased to 127.4 in July, above the estimate of 126, from a revised 127.1 previously. The S&P 500 (2,816.29) remains above both its 20d moving average (2,796.99 – positive slope) and 50d moving average (2,765.34 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against its major pairs on Tuesday with exception of the AUD and the CAD. On the economic data front, personal income increased by 0.4% in June, meeting the estimate, compared to +0.4% a month ago while personal spending also increased by 0.4%, meeting the expectation, from a revised +0.5% in May. Finally, the Conference Board consumer confidence index increased to 127.4 in July, above the estimate of 126, from a revised 127.1 previously.
The Euro was mixed against its major pairs. Eurozone GDP growth was 0.3% in 2Q in first reading vs. +0.4% expected and +0.4% in the previous quarter. Separately, euro-zone CPI was up 2.1% YoY in July vs a +2% a month earlier and +2% anticipated. Germany retail sales were up by 1.2% in June after dropping by 2.1% in May. Economists anticipated +1%. UK GfK consumer confidence index fell to -10 in July from -9 a month earlier, it was expected to be flat.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 18) was down $1.4 to $68.75. The contract was below its 20D MA (@ $69.39) and above its 50D MA (@ $68.22).
Gold was up $3.1 to $1224.5. The precious metal was below its 20D MA (@ $1237) and below its 50D MA (@ $1264).
Copper Future (SEP 18) on Comex was up 3.7c to 282.9c/lb. The contract was above its 20D MA (@ 279.46c) and below its 50D MA (@ 299.23c). In Europe, the London Metal Exchange reported its copper inventories decreased 1850 tons to 254425 tons.