General Market Comment
US indices closed lower on Tuesday even though they recovered from a big drop at the open. Shares in the Energy (-2.67%), Transportation (-1.71%) and Capital Goods (-1.57%) sectors traded lower. On the economic data front, the Richmond Federal Manufacturing index decreased to 15 in October (estimated 24) from 29 in the previous month. The S&P 500 (2,740.69) remains at levels below both its 20d moving average (2,837.18 – negative slope) and 50d moving average (2,866.24 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Tuesday. On the economic data front, the Richmond Federal Manufacturing index decreased to 15 in October (estimated 24) from 29 in the previous month.
The Euro was bullish against most of its major pairs with the exception of the JPY and the GBP. Euro-zone consumer confidence index increased to -2.7 in October in first estimation vs -2.9 the month before and -3.2 anticipated. German PPI index was up by 0.5% in September (+0.3% expected) after being up 0.3% in August.
The Australian dollar was bearish against most of its major pairs with the exception of the USD.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was down $3.1 to $66.31. The contract was below its 20D MA (@ $72.1) and below its 50D MA (@ $69.7).
Gold was up $8.2 to $1230.2. The precious metal was above its 20D MA (@ $1208) and above its 50D MA (@ $1202).
Copper Future (DEC 18) on Comex was down 2.4c to 276.1c/lb. The contract was below its 20D MA (@ 278.8c) and above its 50D MA (@ 273.06c). In Europe, the London Metal Exchange reported its copper inventories decreased 3125 tons to 151100 tons.