General Market Comment
U.S. indices closed slightly lower on Wednesday, pressured by shares in the Media (-1.73%), Retailing (-0.8%) and Energy (-0.77%) sectors. On the economic data front, trade deficit narrowed to $49.3B in November (estimated $54.0B) from $55.7B in October. The S&P 500 (2,731.61) stays above its 20d moving average (2,652.10 – positive slope) and 50d moving average (2,613.29 – positive 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 Wednesday. On the economic data front, MBA mortgage applications declined by 2.5% in week ended February 1st from a decrease of 3% in the previous week. In other news, the trade deficit reached $49.3B in November (estimated $54B) compared to $55.7B a month earlier.
The Euro was mixed against its major pairs. The Germany factory orders fell by 1.6% in December (+0.3% expected) after a 0.2% decrease a month earlier (revised from -1%).
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 $53.97. The contract was above its 20D MA (@ $53.15) and above its 50D MA (@ $51.01). The US Department of Energy reported that, for the week ended 1 February, crude oil inventories increased 1263k barrels compared to the previous week.
Gold was down $8.9 to $1306.5. The precious metal was above its 20D MA (@ $1299) and above its 50D MA (@ $1276).
Copper Future (MAR 19) on Comex was about flat to 282.5c/lb. The contract was above its 20D MA (@ 270.77c) and above its 50D MA (@ 271.31c). In Europe, the London Metal Exchange reported its copper inventories decreased 250 tons to 149550 tons