General Market Comment
US indices closed higher on Monday, boosted by shares in the Technology Hardware & Equipment (+0.92%), Semiconductors & Semiconductor Equipment (+0.73%) and Automobiles & Components (+0.69%) sectors. On the economic data front, the Chicago federal national activity index declined to -0.43 in January (estimated 0.10) from 0.05 in December. In other news, wholesale inventories improved by 1.1% in a preliminary estimate in December (forecasted 0.4%) from 0.4% in November. Also, the Dallas federal manufacturing activity index jumped to 13.1 in February (expected 4.7) compared to 1 in January. The S&P 500 (2,796.11) stays above its 20d moving average (2,732.03 – positive slope) and 50d moving average (2,628.23 – positive slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Monday with the exception of the CAD and the JPY. On the economic data front, the Chicago federal national activity index declined to -0.43 in January (estimated 0.10) from 0.05 in December. In other news, wholesale inventories improved by 1.1% in a preliminary estimate in December (forecasted 0.4%) from 0.4% in November. Also, the Dallas federal manufacturing activity index jumped to 13.1 in February (expected 4.7) compared to 1 in January.
The Euro was bullish against most of its major pairs except for the NZD, the AUD and the GBP. Fitch Ratings confirmed the “BBB” credit rating note of Italy with a negative outlook.
The Australian dollar was higher against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was down $1.9 to $55.36. The contract was above its 20D MA (@ $54.69) and above its 50D MA (@ $51.95).
Gold was about flat to $1327. The precious metal was above its 20D MA (@ $1319) and above its 50D MA (@ $1296).
Copper Future (MAY 19) on Comex was about flat to 295c/lb. The contract was above its 20D MA (@ 282.15c) and above its 50D MA (@ 273.7c). The 14d RSI above 70 (70.6) indicates Copper Future (MAY 19) contract was overbought. In Europe, the London Metal Exchange reported its copper inventories decreased 1375 tons to 132450 tons.