General Market Comment
US indices closed mixed on Tuesday for the third trading day straight. Shares in the Automobiles & Components (-2.72%), Semiconductors & Semiconductor Equipment (-1.24%) and Utilities (-1.22%) sectors traded lower while shares in the Retailing (+0.9%), Energy (+0.57%) and Consumer Services (+0.57%) sectors gained strength. On the economic data front, the FHFA house price index rose 0.2% MoM in July (estimated 0.3%) from 0.3% in June. In addition, the Richmond federal manufacturing index increased to 29 in September (forecasted 20) compared to 24 a month earlier. Finally, the Conference Board consumer confidence index advanced to 138.4 i September (expected 132.1) from 134.7 in August. The S&P 500 (2,915.56) remains above its 20d moving average (2,900.44 – positive slope) and 50d moving average (2,862.09 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Tuesday with the exception of the JPY. On the economic data front, the FHFA house price index improved by 0.2% MoM in July (estimated 0.3%) from 0.3% in June. In addition, the Richmond federal manufacturing index increased to 29 in September (forecasted 20) compared to 24 a month earlier. Finally, the Conference Board consumer confidence index advanced to 138.4 i September (expected 132.1) from 134.7 in August.
The Euro was bullish against most of its major pairs with the exception of the GBP. In Europe, French business confidence index rose to 106 in September from 105 a month earlier. Economists anticipated 105.
The Australian dollar was lower against most of its major pairs with the exception of the JPY.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was about flat to $72.28. The contract was above its 20D MA (@ $69.4) and above its 50D MA (@ $67.71).
Gold was up $2.1 to $1201.2. The precious metal was above its 20D MA (@ $1200) and below its 50D MA (@ $1205).
Copper Future (DEC 18) on Comex was down 1.5c to 282.1c/lb. The contract was above its 20D MA (@ 269.87c) and above its 50D MA (@ 273c). In Europe, the London Metal Exchange reported its copper inventories decreased 1425 tons to 212925 tons.