General Market Comment
US indices closed higher on Tuesday, led by shares in the Real Estate (+1.19%), Technology Hardware & Equipment (+0.75%) and Food & Staples Retailing (+0.57%) sectors. On the economic data front, wholesale inventories MoM increased by 0.7% in a preliminary estimate in July (estimated +0.2%) from +0.1% in June. In addition, the Richmond Fed’s manufacturing index increased to 24 in August (estimated 17) compared to 20 from the prior month. Finally, the Conference Board consumer confidence index increased to 133.4 in August, above the estimate of 126.6, from a revised 127.9 previously. The S&P 500 (2,897.52) remains above its 20d moving average (2,850.66 – positive slope) and 50d moving average (2,805.77 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was mixed against its major pairs on Tuesday. On the economic data front, wholesale inventories MoM increased by 0.7% in a preliminary estimate in July (estimated +0.2%) from +0.1% in June. In addition, the Richmond Fed’s manufacturing index increased to 24 in August (estimated 17) compared to 20 from the prior month. Finally, the Conference Board consumer confidence index increased to 133.4 in August, above the estimate of 126.6, from a revised 127.9 previously.
The Euro was mixed against its major pairs. In Europe, Eurozone M3 money supply growth was 4% in July (+4.3% expected) vs 4.5% in the previous month.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 18) was about flat to $68.5. The contract was above its 20D MA (@ $66.88) and above its 50D MA (@ $67.37).
Gold was down $10.1 to $1201.2. The precious metal was above its 20D MA (@ $1200) and below its 50D MA (@ $1226).
Copper Future (DEC 18) on Comex was up 1.4c to 274.55c/lb. The contract was above its 20D MA (@ 272.26c) and below its 50D MA (@ 282.36c). In Europe, the London Metal Exchange reported its copper inventories increased 1100 tons to 268175 tons.