General Market Comment
US indices closed higher on Wednesday, lifted by shares in the Automobiles & Components (+1.68%), Semiconductors & Semiconductor Equipment (+1.37%) and Media (+1.21%) sectors. On the economic data front, MBA mortgage applications improved by 1.6% in week ended December 7th from an increase of 2% in the previous week. In other news, CPI remained flat MoM in November, in-line with expectations, from an advance of 0.3% in October. The S&P 500 (2,651.07) remains below its 20d moving average (2,692.39 – negative slope) and 50d moving average (2,741.43 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pair on Wednesday with the exception of the NZD. On the economic data front, MBA mortgage applications improved by 1.6% in week ended December 7th from an increase of 2% in the previous week. In other news, CPI remained flat MoM in November, in-line with expectations, from an advance of 0.3% in October.
The Euro was bullish against most of its major pairs with the exception of the GBP. The euro-zone industrial production increased by 0.2% in October (+0.1% expected) after a 0.6% drop a month earlier.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was about flat to $51.17. The contract was below its 20D MA (@ $52.92) and below its 50D MA (@ $61.72). The US Department of Energy reported that, for the week ended 7 December, crude oil inventories fell 1208k barrels compared to the previous week.
Gold was up $2.3 to $1245.5. The precious metal was above its 20D MA (@ $1229) and above its 50D MA (@ $1223).
Copper Future (MAR 19) on Comex was about flat to 276.4c/lb. The contract was below its 20D MA (@ 277.31c) and below its 50D MA (@ 277.33c). In Europe, the London Metal Exchange reported its copper inventories decreased 1400 tons to 119900 tons.