General Market Comment
US indices closed mixed on Tuesday. Shares in the Automobiles & Components (-2.22%), Materials (-1.25%) and Consumer Durables & Apparel (-1.13%) sectors were under pressure while shares in the Telecommunication Services (+2.04%), Pharmaceuticals, Biotechnology & Life Sciences (+1.1%) and Transportation (+1.07%) sectors gained momentum. On the economic data front, the FHFA house price index improved by 0.2% MoM in September (estimated 0.4%) from an increase of 0.4% in the previous month. In other news, the Conference Board consumer confidence index declined to 135.7 in November, in-line with estimates, from 137.9 in October. The S&P 500 (2,682.17) remains below its 20d moving average (2,717.02 – positive slope) and 50d moving average (2,785.07 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Tuesday with the exception of the NZD. On the economic data front, the FHFA house price index improved by 0.2% MoM in September (estimated 0.4%) from an increase of 0.4% in the previous month. In other news, the Conference Board consumer confidence index declined to 135.7 in November, in-line with estimates, from 137.9 in October.
The Euro was bearish against most of its major pairs except for the CAD and the GBP. The French consumer confidence index fell to 92 in November (94 expected) from 95 a month earlier.
The Australian dollar was higher against most of its major pairs except for the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was about flat to $51.79. The contract was below its 20D MA (@ $58.61) and below its 50D MA (@ $66.11). The 14d RSI below 30 (24.5) indicates WTI Crude Future (JAN 19) was oversold.
Gold was down $7.5 to $1214.9. The precious metal was below its 20D MA (@ $1220) and below its 50D MA (@ $1215).
Copper Future (MAR 19) on Comex was down 3.9c to 273.4c/lb. The contract was below its 20D MA (@ 275.26c) and below its 50D MA (@ 278.27c). In Europe, the London Metal Exchange reported its copper inventories increased 750 tons to 137850 tons.