General Market Comment
US indices closed mixed on Tuesday. Shares in the Energy (-2.35%), Food, Beverage & Tobacco (-1.95%) and Health Care Equipment & Services (-0.83%) sectors ended on a negative note while shares in the Retailing (+1.38%), Semiconductors & Semiconductor Equipment (+1.23%) and Consumer Durables & Apparel (+1.21%) sectors gained momentum. On the economic data front, housing starts rose 3.2% MoM to 1.256M units in November (vs 1.228M expected) and building permits jumped 5.0% MoM to 1.328M in November (vs 1.26M expected). The S&P 500 (2,546.16) remains below its 20d moving average (2,665.00 – negative slope) and 50d moving average (2,715.61 – negative slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against most of its major pair on Tuesday with the exception of the CAD and the AUD. On the economic data front, housing starts increased by 3.2% MoM to 1.256M units in November (estimated 1.228M) from 1.217M in October. Building permits jumped by 5% MoM to 1.328M in November (expected 1.26M) compared to 1.265M a month earlier.
The Euro was bullish against most of its major pairs with the exception of the NZD and the JPY. The German IFO business sentiment index fell to 101 in December (101.7 expected), its lowest level in more than two years, from 102 a month earlier.
The Australian dollar was lower against most of its major pairs with the exception of the CAD.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was down $3.7 to $46.19. The contract was below its 20D MA (@ $51.56) and below its 50D MA (@ $59.75). The 14d RSI below 30 (27.45) indicates WTI Crude Future (JAN 19) was oversold.
Gold was up $3.7 to $1249.6. The precious metal was above its 20D MA (@ $1234) and above its 50D MA (@ $1227).
Copper Future (MAR 19) on Comex was down 9.4c to 266c/lb. The contract was below its 20D MA (@ 276.53c) and below its 50D MA (@ 276.77c). In Europe, the London Metal Exchange reported its copper inventories increased 200 tons to 122000 tons.