General Market Comment
US indices closed lower on Monday as tech stocks were under pressure. Shares in the Semiconductors & Semiconductor Equipment (-4.11%), Software & Services (-3.87%) and Retailing (-3.54%) sectors were in the red zone. On the economic data front, the NAHB housing market index decreased to 60 in November (estimated 67) from 68 in October. The S&P 500 (2,690.73) breaks below its 20d moving average (2,723.14 – negative slope) and stays below 50d moving average (2,808.96 – negative slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Monday with the exception of the CAD, the AUD and the NZD. On the economic data front, the NAHB housing market index decreased to 60 in November (estimated 67) from 68 in October.
The Euro was bullish against most of its major pairs except for the CHF. The ECB current account excess narrowed to E16.9B in September from E24.3B a month earlier. Separately, the euro-zone construction output increased by 2% in September after a 0.6% decline in August. According to Rightmove, the house prices in UK declined by 1.7% in November after being up by 1% a month earlier.
The Australian dollar was lower against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was up $0.7 to $57.34. The contract was below its 20D MA (@ $62.32) and below its 50D MA (@ $67.75). The 14d RSI below 30 (23.84) indicates WTI Crude Future (JAN 19) was oversold.
Gold was up $2.5 to $1224. The precious metal was above its 20D MA (@ $1223) and above its 50D MA (@ $1212).
Copper Future (MAR 19) on Comex was about flat to 280.5c/lb. The contract was above its 20D MA (@ 275.14c) and above its 50D MA (@ 277.28c). In Europe, the London Metal Exchange reported its copper inventories decreased 9400 tons to 151625 tons.