General Market Comment
U.S. indices closed higher on Monday, led by shares in the Technology Hardware & Equipment (+1.92%), Software & Services (+1.75%) and Media (+1.46%) sectors. On the economic data front, factory orders declined 0.6% MoM in November (vs +0.3% estimated, -2.1% in October). Also, final readings of November durable goods orders increased 0.7% MoM in November (vs 1.5% expected, +0.8% previously estimated). The S&P 500 (2,724.87) stays above its 20d moving average (2,634.784 – positive slope) and 50d moving average (2,609.74 – flat slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Monday. On the economic data front, factory orders declined by 0.6% in November (estimated 0.3%) from a decrease of 2.1% in October. Also, durable goods orders improved by 0.7% in November (expected 1.5%) compared to an increase of 0.8% in the prior month.
The Euro was bullish against most of its major pairs except for the USD. The euro zone PPI index fell by 0.8% in December (-0.5% expected) after a 0.3% slide a month earlier. The UK PMI construction index dropped to 50.6 in January (52.5 anticipated) from 52.8 in December.
The Australian dollar was lower against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was about flat to $54.75. The contract was above its 20D MA (@ $52.72) and above its 50D MA (@ $50.98).
Gold was down $5.7 to $1312. The precious metal was above its 20D MA (@ $1296) and above its 50D MA (@ $1271).
Copper Future (MAR 19) on Comex was up 2.6c to 279.9c/lb. The contract was above its 20D MA (@ 269.05c) and above its 50D MA (@ 271.22c). In Europe, the London Metal Exchange reported its copper inventories decreased 50 tons to 149900 tons