General Market Comment
US indices closed mixed on Tuesday. Shares in the Automobiles & Components (-3.91%), Materials (-3.4%) and Capital Goods (-1.66%) sectors declined throughout the day while shares in the Energy (+2.41%), Consumer Services (+0.85%) and Technology Hardware & Equipment (+0.79%) sectors gained a bit of traction. On the economic data front, the NFIB small business optimism index slipped to 107.9 in September (estimated 108.3) from 108.8 in August. The S&P 500 (2,880.34) stays below its 20d moving average (2,907.70 – flat slope) but remains above 50d moving average (2,880.00 – positive slope).
European markets are expected to start-open on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Tuesday. On the economic data front, the NFIB small business optimism index slightly lowered to 107.9 in September (estimated 108.3) from 108.8 in the previous month.
The Euro was bearish against all of its major pairs. Germany trade balance excess widened to E15.3B from E15.1B a month earlier. It was expected to be E16.2B. Exports decreased 0.1% while imports fell 2.7%.
The Australian dollar was higher against most of its major pairs with the exception of the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was up $0.6 to $74.88. The contract was above its 20D MA (@ $72.18) and above its 50D MA (@ $69.19).
Gold was about flat to $1189.9. The precious metal was below its 20D MA (@ $1198) and below its 50D MA (@ $1199).
Copper Future (DEC 18) on Comex was up 4.5c to 281.2c/lb. The contract was above its 20D MA (@ 276.68c) and above its 50D MA (@ 273c). In Europe, the London Metal Exchange reported its copper inventories decreased 4125 tons to 177850 tons.