General Market Comment
US indices gave up early gains on Monday as the possibility of more U.S.- China tariffs and a slide in tech shares rattled the markets. Shares in the Media (-2.49%), Retailing (-2.43%) and Capital Goods (-2.29%) sectors were under the most pressure. On the economic data front, U.S. personal income increased 0.2% in September (0.4% estimate) compared to a revised 0.4% increase in August. Personal spending gained 0.4% in Sept, in-line with estimates vs a revised 0.5% gain in Aug. The S&P 500 (2,641.25) remains at levels below both its 20d moving average (2,787.34 – negative slope) and 50d moving average (2,852.49 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against all its major pairs on Monday with the exception of the NZD. On the economic data front, U.S. personal income increased 0.2% in September (0.4% estimate) compared to a revised 0.4% increase in August. Personal spending gained 0.4% in Sept, in-line with estimates vs a revised 0.5% gain in Aug.
The Euro was Bullish against most of its major pairs with the exception of the NZD. In Europe, UK mortgage approvals declined to 65.3K in September (64.7K expected) from 66.1K a month before.
The Australian dollar was bearish against all of its major pairs except for the JPY.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was about flat to $67.04. The contract was below its 20D MA (@ $70.97) and below its 50D MA (@ $69.91).
Gold was about flat to $1230.3. The precious metal was above its 20D MA (@ $1218) and above its 50D MA (@ $1206).
Copper Future (DEC 18) on Comex was about flat to 274.05c/lb. The contract was below its 20D MA (@ 277.73c) and above its 50D MA (@ 273.9c). In Europe, the London Metal Exchange reported its copper inventories decreased 3225 tons to 143125 tons.