General Market Comment
US indices closed higher on Wednesday as the S&P500 and Nasdaq both reached a new record high. Shares in the Retailing (+1.61%), Technology Hardware & Equipment (+1.22%) and Software & Services (+1.13%) ended on a positive note. On the economic data front, MBA mortgage applications decreased 1.7% in the week ending on August 24th compared to +4.2% in the week prior. In addition, 2Q GDP increased by 4.2% in a second estimate (expected 4%) from 4.1% in the prior estimate while 2Q personal consumption decreased to 3.8% in a second estimate (expected 3.9%) from 4% in the prior estimate. Finally, pending home sales decreased by 0.7% in July, below the expectation of +0.3%, from a revised +1% in the last month. The S&P 500 (2,914.04) remains above its 20d moving average (2,855.65 – positive slope) and 50d moving average (2,808.80 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was mixed against its major pairs on Wednesday. On the economic data front, MBA mortgage applications decreased 1.7% in the week ending on August 24th compared to +4.2% in the week prior. In addition, 2Q GDP increased by 4.2% in a second estimate (expected 4%) from 4.1% in the prior estimate while 2Q personal consumption decreased to 3.8% in a second estimate (expected 3.9%) from 4% in the prior estimate. Finally, pending home sales decreased by 0.7% in July, below the expectation of +0.3%, from a revised +1% in the last month.
The Euro was bullish against its major pairs with exception of the CHF and the GBP. Germany GfK consumer confidence index fell to 10.5 in September from 10.6 a month earlier. It was expected to be flat. French GDP growth was 0.2% in 2Q in the second estimation, as in the first one.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 18) was up $1.2 to $69.7. The contract was above its 20D MA (@ $67.04) and above its 50D MA (@ $67.49). The US Department of Energy reported that, for the week ended 24 August, crude oil inventories fell 2566k barrels compared to the previous week.
Gold was up $6.2 to $1207.2. The precious metal was above its 20D MA (@ $1200) and below its 50D MA (@ $1225).
Copper Future (DEC 18) on Comex was down 2.5c to 273.35c/lb. The contract was above its 20D MA (@ 272.14c) and below its 50D MA (@ 281.66c). In Europe, the London Metal Exchange reported its copper inventories decreased 325 tons to 267850 tons.