General Market Comment
US indices closed higher on Wednesday, led by shares in the Energy (+1.29%), Consumer Services (+1.11%) and Food & Staples Retailing (+0.75%) sectors. On the economic data front, MBA mortgage applications decreased by 3.7% YoY in week ended February 8th from a decline of 2.5% in the previous week. In other news, CPI remained unchanged MoM in January (estimated 0.1%) from a flat level the month before. Finally, the monthly deficit improved to $13.5B in December (forecasted $11B) compared to $23.2B last year. The S&P 500 (2,753.03) stays above its 20d moving average (2,684.63 – positive slope) and 50d moving average (2,616.33 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Wednesday except for the NZD. On the economic data front, MBA mortgage applications decreased by 3.7% YoY in week ended February 8th from a decline of 2.5% in the previous week. In other news, CPI remained unchanged MoM in January (estimated 0.1%) from a flat level the month before. Finally, the monthly deficit improved to $13.5B in December (forecasted $11B) compared to $23.2B last year.
The Euro was bearish against all of its major pairs. The euro zone industrial production fell by 0.9% in December (-0.4% expected) after a 1.7% decrease a month ago. The UK CPI fell by 0.8% in January (-0.7% anticipated) after a 0.2% increase a month earlier.
The Australian dollar was higher against most of its major pairs except for the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was up $0.9 to $54.04. The contract was above its 20D MA (@ $53.36) and above its 50D MA (@ $51.16). The US Department of Energy reported that, for the week ended 8 February, crude oil inventories increased 3633k barrels compared to the previous week.
Gold was down $4.8 to $1306. The precious metal was above its 20D MA (@ $1303) and above its 50D MA (@ $1282).
Copper Future (MAR 19) on Comex was about flat to 277.75c/lb. The contract was above its 20D MA (@ 274.58c) and above its 50D MA (@ 271.51c). In Europe, the London Metal Exchange reported its copper inventories decreased 350 tons to 147900 tons.