General Market Comment
US indices closed higher on Tuesday, led by shares in the Automobiles & Components (+1.44%), Food & Staples Retailing (+1.27%) and Household & Personal Products (+1.07%) sectors. On the economic data front, the NAHB housing market index improved to 62 in February (expected 59) from 58 in January. The S&P 500 (2,779.76) stays above its 20d moving average (2,703.55 – positive slope) and 50d moving average (2,617.34 – positive slope). European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Tuesday. On the economic data front, the NAHB housing market index improved to 62 in February (expected 59) from 58 in January. The Euro was mixed against its major pairs. The Germany ZEW investor confidence index fell to 15 in February (20 expected) from 27.6 a month earlier. The UK unemployment rate was flat at 4% for the October-December period, as anticipated. The Australian dollar was higher against most of its major pairs with the exception of the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was about flat to $56.07. The contract was above its 20D MA (@ $53.71) and above its 50D MA (@ $51.28). Gold was up $14.2 to $1341.1. The precious metal was above its 20D MA (@ $1311) and above its 50D MA (@ $1289). The 14d RSI above 70 (71.62) indicates gold was overbought. Copper Future (MAY 19) on Comex was up 7.2c to 287.55c/lb. The contract was above its 20D MA (@ 277.15c) and above its 50D MA (@ 272.27c). In Europe, the London Metal Exchange reported its copper inventories decreased 775 tons to 139400 tons.