General Market Comment
U.S. indices closed lower on Monday as investors seem worried regarding the Federal Reserve’s action on interest rates that will take place on Wednesday. Shares in the Household & Personal Products (-3.84%), Real Estate (-3.72%) and Retailing (-3.43%) sectors took the biggest hit. On the economic data front, the Empire Manufacturing index dropped to 10.9 in December (vs 20.0 expected) from 23.3 in November. Meanwhile, the NAHB housing market index fell to 56 in December (vs 60 expected) compared to 60 in November. The S&P 500 (2,545.94) remains below its 20d moving average (2,674.51 – negative slope) and 50d moving average (2,722.40 – negative slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bearish against most of its major pair on Monday with the exception of the CAD. On the economic data front, the Empire Manufacturing index declined to 10.9 in December (estimated 20) from 23.3 in November. In other news, the NAHB housing market index decreased to 56 in December (forecasted 60) compared to 60 in the prior month.
The Euro was bullish against most of its major pairs with the exception of the CHFand the JPY. The euro-zone CPI growth was 1.9% YoY in November in final estimation vs +2% in September and +2% expected. According to Rightmove, the UK house prices were down by 1.5% in December after a 1.7% slide a month earlier.
The Australian dollar was lower against most of its major pairs with the exception of the CAD and the USD.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was down $2 to $49.2. The contract was below its 20D MA (@ $52.08) and below its 50D MA (@ $60.29).
Gold was up $7.6 to $1246. The precious metal was above its 20D MA (@ $1233) and above its 50D MA (@ $1226).
Copper Future (MAR 19) on Comex was down 2.1c to 274.2c/lb. The contract was below its 20D MA (@ 277.2c) and below its 50D MA (@ 277.01c). In Europe, the London Metal Exchange reported its copper inventories increased 575 tons to 121800 tons