General Market Comment
US indices closed mixed on Monday as the Russell 2000 is the only US index to close positive. Shares in the Technology Hardware & Equipment (-1.88%), Software & Services (-1.6%) and Semiconductors & Semiconductor Equipment (-1.32%) sectors ended in the red zone while shares in the Household & Personal Products (+0.98%), Automobiles & Components (+0.94%) and Food, Beverage & Tobacco (+0.79%) sectors gained momentum. On the economic data front, the Empire Manufacturing index advanced to 21.1 in October (estimated 20) from 19 in the previous month. Retail sales improved by 0.1% MoM in September (forecasted 0.6%) compared to 0.1% a month earlier. In other news, the September budget surplus jumped to $119.1B (forecasted $83B) from $7.9B in the previous year. Finally, the budget deficit for FY2018 expanded by 17% YoY to $779B (largest deficit since 2012). The S&P 500 (2,750.79) continues to stay below both its 20d moving average (2,879.95 – negative slope) and 50d moving average (2,874.70 – negative slope).
European markets are expected to open on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Monday. On the economic data front, the Empire Manufacturing index advanced to 21.1 in October (estimated 20) from 19 in the previous month. Retail sales improved by 0.1% MoM in September (forecasted 0.6%) compared to 0.1% a month earlier. In other news, the September budget surplus jumped to $119.1B (forecasted $83B) from $7.9B in the previous year. Finally, the budget deficit for FY2018 expanded by 17% YoY to $779B (largest deficit since 2012).
The Euro was bearish against most of its major pairs with the exception of the GBP and the USD. According to Rightmove, UK house prices increased 1% in October after a 0.7% rise the month before.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was about flat to $71.7. The contract was below its 20D MA (@ $72.74) and above its 50D MA (@ $69.58).
Gold was up $9.4 to $1227.4. The precious metal was above its 20D MA (@ $1201) and above its 50D MA (@ $1199).
Copper Future (DEC 18) on Comex was down 2.3c to 277.75c/lb. The contract was below its 20D MA (@ 279.18c) and above its 50D MA (@ 272.97c). In Europe, the London Metal Exchange reported its copper inventories decreased 4900 tons to 161700 tons.