US indices closed lower on Tuesday, pressured by shares in the Health Care Equipment & Services (-0.67%), Capital Goods (-0.62%) and Materials (-0.59%) sectors. On the economic data front, housing starts decreased to 1.078M units in December (estimated 1.256M) from 1.214M in November while building permits remained relatively unchanged at 1.326M in December (forecasted 1.29M) compared to 1.322M a month earlier. In other news, the Richmond federal manufacturing index surged to 16 in February (expected 5) vs. -2 in January. Finally, the Conference Board consumer confidence index increased to 131.4 in February (estimated 124.9) from 121.7 in January. The S&P 500 (2,793.90) stays above its 20d moving average (2,739.53 – positive slope) and 50d moving average (2,631.09 – 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, housing starts decreased to 1.078M units in December (estimated 1.256M) from 1.214M in November while building permits remained relatively unchanged at 1.326M in December (forecasted 1.29M) compared to 1.322M a month earlier. In other news, the Richmond federal manufacturing index surged to 16 in February (expected 5) vs. -2 in January. Finally, the Conference Board consumer confidence index increased to 131.4 in February (estimated 124.9) from 121.7 in January.
The Euro was bullish against most of its major pairs except for the JPY and the GBP. The Germany GfK consumer confidence index was flat for March at 10.8, as expected. The French consumer confidence index increased to 95 in February (92 expected) from 92 a month earlier.
The Australian dollar was higher against most of its major pairs except for the GBP and the JPY.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was about flat to $55.68. The contract was above its 20D MA (@ $54.86) and above its 50D MA (@ $52.03).
Gold was about flat to $1328.9. The precious metal was above its 20D MA (@ $1320) and above its 50D MA (@ $1297).
Copper Future (MAY 19) on Comex was about flat to 294.85c/lb. The contract was above its 20D MA (@ 283.44c) and above its 50D MA (@ 274.06c). The 14d RSI above 70 (70.42) indicates Copper Future (MAY 19) contract was overbought. In Europe, the London Metal Exchange reported its copper inventories increased 625 tons to 133075 tons.