General Market Comment
US indices closed lower on Tuesday, dragged lower by shares in the Energy (-2.39%), Telecommunication Services (-0.81%) and Technology Hardware & Equipment (-0.79%) sectors. On the economic data front, the NFIB small business optimism index slightly decreased to 107.4 in October (estimated 108) from 107.9 in September. In other news, the monthly budget reached a deficit of $100.5B in October (estimated $100B) from a deficit of $63.2B in September. The S&P 500 (2,722.18) remains below its 20d moving average (2,735.28 – negative slope) and 50d moving average (2,822.10 – negative slope).
European markets are expected to start on a flat 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, the NFIB small business optimism index slightly decreased to 107.4 in October (estimated 108) from 107.9 in September. In other news, the monthly budget reached a deficit of $100.5B in October (estimated $100B) from a deficit of $63.2B in September.
The Euro was bullish against most of its major pairs with the exception of the GBP and the NZD. The German ZEW investor sentiment index reached -24.1 in November (-26 expected) vs -24.7 a month earlier. Separately, the German CPI improved by 0.2% in October, as anticipated, vs +0.4% in September. The UK ILO unemployment rate was up to 4.1% for the July-September period (expected to be flat at 4%) from 4% in the previous period.
The Australian dollar was bullish 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 $4.7 to $55.26. The contract was below its 20D MA (@ $64.68) and below its 50D MA (@ $68.63). The 14d RSI below 30 (13.35) indicates WTI Crude Future (DEC 18) was oversold.
Gold was up $2.3 to $1202.7. The precious metal was below its 20D MA (@ $1224) and below its 50D MA (@ $1210).
Copper Future (DEC 18) on Comex was about flat to 268.4c/lb. The contract was below its 20D MA (@ 273.57c) and below its 50D MA (@ 274.23c). In Europe, the London Metal Exchange reported its copper inventories decreased 1000 tons to 168325 tons.