General Market Comment 06.11.18

General Market Comment

US indices closed higher on Tuesday ahead of the midterm elections. Shares in the Materials (+1.51%), Capital Goods (+1.22%) and Health Care Equipment & Services (+1.1%) sectors traded higher. On the economic data front, there was no news to report. The S&P 500 (2,755.45) breaks above its 20d moving average (2,734.87 – negative slope) but stays below 50d moving average (2,835.31 – negative slope).

European markets are expected to start on a positive note.

Foreign Exchange

The US dollar was bearish against most of its major pairs on Tuesday with the exception of the CAD and the JPY. On the economic data front, there was no news to report.

The Euro was mixed against its major pairs. Euro zone PMI composite index was down to 53.1 in October vs 54.1 a month earlier. Economists anticipated 52.7. Euro zone PMI services index edged down to 53.7 vs 54.7 a month earlier. Production price index was up 0.5% in September vs +0.4% a month earlier. Economists anticipated +0.4%. In Germany, PMI services index advanced to 57.7 in October vs 55.9 in September. The PMI composite index edged down to 53.4 vs 55 a month earlier. Factory orders advanced 0.3% in September vs 2.5% in August. Economists anticipated +0.5%.

The Australian dollar was higher against most of its major pairs except for the GBP and the NZD.

Commodities

After the close of Wall Street, WTI Crude Future (DEC 18) was down $1.3 to $61.82. The contract was below its 20D MA (@ $67.69) and below its 50D MA (@ $69.55). The 14d RSI below 30 (23.34) indicates WTI Crude Future (DEC 18) was oversold.

Gold was down $4.6 to $1226.9. The precious metal was above its 20D MA (@ $1225) and above its 50D MA (@ $1209).

Copper Future (DEC 18) on Comex was down 2.3c to 273.3c/lb. The contract was below its 20D MA (@ 275.66c) and below its 50D MA (@ 274.13c). In Europe, the London Metal Exchange reported its copper inventories decreased 2550 tons to 175400 tons.