General Market Comment
The US markets were closed on Wednesday to commemorate the passing of President George H.W Bush. The U.S. Federal Reserve released their Beige Book stating that the economy expanded at a modest or moderate pace from mid-October through later November. Also, some districts cited that “optimism has waned” due to the impacts of tariffs, rising interest rates and a tight labor market. 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 Wednesday with the exception of the GBP. The US markets were closed on Wednesday to commemorate the passing of President George H.W Bush. On the economic data front, MBA mortgage applications improved by 2% in week ended November 30th from a rise of 5.5% in the previous week. In other news, the Fed released their Beige Book stating that the economy expanded at a modest or moderate pace from mid-October through later November. Also, some districts cited that “optimism has waned” due to the impacts of tariffs, rising interest rates and a tight labor market.
The Euro was bullish against most of its major pairs except for the GBP. The euro-zone PMI services index was 53.4 in November in final estimation vs 53.1 in first one and 53.7 in October. Separately, the UK PMI services was down to 50.4 in November (52.5 expected) from 52.2 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 about flat to $52.96. The contract was below its 20D MA (@ $54.97) and below its 50D MA (@ $63.88).
Gold was about flat to $1237.4. The precious metal was above its 20D MA (@ $1221) and above its 50D MA (@ $1218).
Copper Future (MAR 19) on Comex was up 1.4c to 277.25c/lb. The contract was above its 20D MA (@ 276.65c) and below its 50D MA (@ 278.05c). In Europe, the London Metal Exchange reported its copper inventories decreased 1975 tons to 128200 tons.