General Market Comment
US indices closed mixed on Monday. Shares in the Technology Hardware & Equipment (-1.7%), Retailing (-0.61%) and Media (-0.57%) sectors traded lower while shares in the Diversified Financials (+2.09%), Insurance (+1.72%) and Real Estate (+1.69%) sectors gained momentum. On the economic data front, Markit US services PMI reached 54.8 in October (estimated 54.6) from 53.5 in September. Markit US composite PMI improved to 54.9 in October compared to 53.9 a month earlier. Finally, the ISM non-manufacturing index slightly diminished to 60.3 in October (expected 59) from 61.6 in the previous month. The S&P 500 (2,738.31) remains at levels below both its 20d moving average (2,741.11 – negative slope) and 50d moving average (2,838.14 – 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 Monday. On the economic data front, Markit US services PMI reached 54.8 in October (estimated 54.6) from 53.5 in September. Markit US composite PMI improved to 54.9 in October compared to 53.9 a month earlier. Finally, the ISM non-manufacturing index slightly diminished to 60.3 in October (expected 59) from 61.6 in the previous month.
The Euro was bullish against most of its major pairs except for the GBP. UK PMI manufacturing was down to 52.1 in October vs 54.1 a month earlier. Economists anticipated 53.4.
The Australian dollar was higher against most of its major pairs except for the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was about flat to $62.77. The contract was below its 20D MA (@ $68.33) and below its 50D MA (@ $69.68). The 14d RSI below 30 (25.67) indicates WTI Crude Future (DEC 18) was oversold.
Gold was about flat to $1231.7. The precious metal was above its 20D MA (@ $1224) and above its 50D MA (@ $1208).
Copper Future (DEC 18) on Comex was down 5.3c to 275.35c/lb. The contract was below its 20D MA (@ 276.02c) and above its 50D MA (@ 274.13c). In Europe, the London Metal Exchange reported its copper inventories decreased 2425 tons to 177950 tons.