General Market Comment
US indices closed higher on Wednesday, boosted by shares in the Materials (+1.69%), Automobiles & Components (+0.96%) and Consumer Services (+0.89%) sectors. On the economic data front, MBA mortgage applications improved by 3.6% in week ended February 15th from a decline of 6.9% in the prior week. The Fed released the minutes of their Jan 29th-30th meeting which shows that policy makers saw few risks in keeping the federal funds rate target unchanged “for a time”. The Fed officials believe that further rate hikes might be necessary if inflation were to accelerate. The S&P 500 (2,784.70) stays above its 20d moving average (2,711.14 – positive slope) and 50d moving average (2,619.11 – 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 with the exception of the CAD. On the economic data front, MBA mortgage applications improved by 3.6% in week ended February 15th from a decline of 6.9% in the prior week. The Fed released the minutes of their Jan 29th-30th meeting which shows that policy makers saw few risks in keeping the federal funds rate target unchanged “for a time”. The Fed officials believe that further rate hikes might be necessary if inflation were to accelerate.
The Euro was bullish against most of its major pairs except for the CAD. The euro-zone consumer confidence index was -7.4 in February in first reading (-7.7 expected) vs -7.9 a month earlier. The Germany PPI index increased by 0.4% in January (-0.1% anticipated) after a 0.4% slide in December.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was up $0.7 to $57.13. The contract was above its 20D MA (@ $54.23) and above its 50D MA (@ $51.7).
Gold was down $2.5 to $1338.4. The precious metal was above its 20D MA (@ $1314) and above its 50D MA (@ $1291).
Copper Future (MAY 19) on Comex was up 3.9c to 291.75c/lb. The contract was above its 20D MA (@ 278.41c) and above its 50D MA (@ 272.61c). The 14d RSI above 70 (70.13) indicates Copper Future (MAY 19) contract was overbought. In Europe, the London Metal Exchange reported its copper inventories increased 100 tons to 139500 tons.