General Market Comment
US indices closed higher on Monday, led by shares in the Retailing (+2.76%), Automobiles & Components (+2.5%) and Consumer Durables & Apparel (+2.05%) sectors. On the economic data front, the ISM non-manufacturing index declined to 57.6 in December (estimated 58.5) vs. 60.7 in November. The S&P 500 (2,549.69) breaks above its 20d moving average (2,531.60 – negative slope) but remains below 50d moving average (2,641.24 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Monday with the exception of the JPY. On the economic data front, the ISM non-manufacturing index declined to 57.6 in December (estimated 58.5) vs. 60.7 in November.
The Euro was bullish against most of its major pairs except for the CHF. The euro zone retail sales increased by 0.6% in November (+0.2% expected), at the same pace than in October. The German retail sales were up by 1.4% in November (+0.4% anticipated) after a 0.1% increase a month earlier (revised from -0.3%). Separately, the German factory orders decreased by 1% in November (-0.1% expected) after a 0.2% increase the month before. In other news, the German PMI construction index was up in December to 53.3 from 51.3 in November. The UK new car registrations fell 5.5% in December after sliding by 3% a month earlier.
The Australian dollar was higher against most of its major pairs except for the CAD, the CHF and the EUR.
Commodities
After the close of Wall Street, WTI Crude Future (FEB 19) was up $0.7 to $48.67. The contract was above its 20D MA (@ $48.12) and below its 50D MA (@ $54.1).
Gold was up $3.6 to $1288.7. The precious metal was above its 20D MA (@ $1265) and above its 50D MA (@ $1241).
Copper Future (MAR 19) on Comex was down 1.3c to 263.5c/lb. The contract was below its 20D MA (@ 269.33c) and below its 50D MA (@ 273.37c). In Europe, the London Metal Exchange reported its copper inventories decreased 50 tons to 132350 tons.