General Market Comment
US indices closed mixed on Monday. Shares in the Banks (-2.33%), Automobiles & Components (-2.15%) and Energy (-1.62%) sectors were under pressure while shares in the Semiconductors & Semiconductor Equipment (+2.03%), Software & Services (+1.6%) and Media (+0.93%) sectors closed in the green zone. On the economic data front, there was no major news to report. The S&P 500 (2,637.72) remains below its 20d moving average (2,703.35 – negative slope) and 50d moving average (2,752.49 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against most of its major pair on Monday with the exception of the NZD and the CHF. On the economic data front, there was no major news to report.
The Euro was mixed against its major pairs. The German trade balance excess was flat at E18.3B in October (E17.1B expected). Exports rose 0.7% while imports increased 1.3%. The UK trade balance deficit widened to £3.3B in October (£1.27B anticipated) from £2.33B a month earlier. Separately, the UK industrial production declined 0.6% in October (+0.1% expected) after having being flat in September.
The Australian dollar was lower against most of its major pairs except for the CAD, the GBP and the JPY.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was down $1.8 to $50.83. The contract was below its 20D MA (@ $53.56) and below its 50D MA (@ $62.66).
Gold was down $3.9 to $1244.4. The precious metal was above its 20D MA (@ $1226) and above its 50D MA (@ $1221).
Copper Future (MAR 19) on Comex was down 3.1c to 272.85c/lb. The contract was below its 20D MA (@ 276.71c) and below its 50D MA (@ 277.56c). In Europe, the London Metal Exchange reported its copper inventories decreased 1950 tons to 122500 tons.