General Market Comment 04.12.18

General Market Comment

US indices closed lower on Tuesday as the Dow plunged by 800pts and the S&P500 closed below its 200-day moving average. Shares in the Semiconductors & Semiconductor Equipment (-5.23%), Banks (-4.74%) and Automobiles & Components (-4.71%) sectors ended on a negative note. On the economic data front, there was no major news to report. The S&P 500 (2,767.87) breaks below its 20d moving average (2,723.83 – negative slope) and 50d moving average (2,767.87 – negative slope).

European markets are expected to start on a negative note.

Foreign Exchange

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

The Euro was bearish against most of its major pairs except for the AUD and the CAD. The euro zone PPI was up by 0.8% in October (+0.5% expected) after a 0.6% increase in September. The UK construction PMI index slightly rose to 53.4 in November (52.5 anticipated) from 53.2 a month earlier.

The Australian dollar was lower against most of its major pairs except for the CAD.

Commodities

After the close of Wall Street, WTI Crude Future (JAN 19) was about flat to $52.61. The contract was below its 20D MA (@ $55.41) and below its 50D MA (@ $64.25).

Gold was about flat to $1239. The precious metal was above its 20D MA (@ $1221) and above its 50D MA (@ $1218).

Copper Future (MAR 19) on Comex was down 5.1c to 275.8c/lb. The contract was below its 20D MA (@ 276.52c) and below its 50D MA (@ 278.19c). In Europe, the London Metal Exchange reported its copper inventories decreased 4025 tons to 130175 tons.