General Market Comment
US indices closed higher on Tuesday, led by shares in the Health Care Equipment & Services (+2.21%), Media (+2.21%) and Software & Services (+1.77%) sectors. On the economic data front, empire manufacturing index fell to 3.9 in January (estimated 10) from 11.5 in December. In other news, PPI final demand decreased by 0.2% MoM in December (estimated -0.1%) compared to an improvement of 0.1% in November. The S&P 500 (2,610.30) stays above its 20d moving average (2,518.40 – flat slope) but remains below 50d moving average (2,631.03 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Tuesday. On the economic data front, empire manufacturing index fell to 3.9 in January (estimated 10) from 11.5 in December. In other news, PPI final demand decreased by 0.2% MoM in December (estimated -0.1%) compared to an improvement of 0.1% in November.
The Euro was bearish against most of its major pairs with the exception of the CHF and the GBP. The euro zone trade balance excess widened to E15.1B in November from E13.5B a month earlier. The German GDP growth was estimated at 1.5% for 2018, its lowest increase in five years, vs +2.2% in 2017.
The Australian dollar was higher against most of its major pairs except for the CAD and the USD.
Commodities
After the close of Wall Street, WTI Crude Future (FEB 19) was up $1.6 to $52.09. The contract was above its 20D MA (@ $47.98) and below its 50D MA (@ $52.3).
Gold was down $2.4 to $1289.3. The precious metal was above its 20D MA (@ $1278) and above its 50D MA (@ $1248).
Copper Future (MAR 19) on Comex was about flat to 264.2c/lb. The contract was below its 20D MA (@ 266.06c) and below its 50D MA (@ 272.36c). In Europe, the London Metal Exchange reported its copper inventories decreased 100 tons to 133600 tons.