General Market Comment
US indices closed lower on Wednesday, pressured by shares in the Technology Hardware & Equipment (-2.24%), Insurance (-1.9%) and Banks (-1.66%) sectors. On the economic data front, MBA mortgage applications fell by 3.2% in week ended November 9th from a decline of 0.7% in the previous week. In other news, CPI advanced by 0.3% MoM in October, in-line with estimates, compared to an improvement of 0.1% in September. The S&P 500 (2,701.58) remains below its 20d moving average (2,729.90 – negative slope) and 50d moving average (2,818.36 – negative slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Wednesday. On the economic data front, MBA mortgage applications fell by 3.2% in week ended November 9th from a decline of 0.7% in the previous week. In other news, CPI advanced by 0.3% MoM in October, in-line with estimates, compared to an improvement of 0.1% in September.
The Euro was bullish against most of its major pairs with the exception of the NZD. Euro zone GDP growth was confirmed at 0.2% in 3Q in second estimation vs +0.4% in the previous quarter. Separately, euro zone industrial production fell 0.3% in September (-0.4% anticipated) vs +1.1% in October. German GDP was down by 0.2% in 3Q in first estimation, the first slide since 2015, after a 0.5% growth in 2Q. It was expected to drop by 0.1%. The UK CPI was up by 0.1% in October, at the same pace than in September. It was expected to increase by 0.2%.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 18) was about flat to $56.15. The contract was below its 20D MA (@ $64.02) and below its 50D MA (@ $68.39). The 14d RSI below 30 (16.64) indicates WTI Crude Future (DEC 18) was oversold.
Gold was up $8.6 to $1210.8. The precious metal was below its 20D MA (@ $1223) and above its 50D MA (@ $1210).
Copper Future (DEC 18) on Comex was up 2.6c to 271.25c/lb. The contract was below its 20D MA (@ 273.26c) and below its 50D MA (@ 274.44c). In Europe, the London Metal Exchange reported its copper inventories decreased 1250 tons to 167075 tons.