U.S. indices closed lower on Monday, pressured by shares in the Health Care Equipment & Services (-2.12%), Telecommunication Services (-2.09%) and Consumer Services (-1.03%) sectors. On the economic data front, construction spending dropped 0.6% MoM in December (vs +0.1% estimated, +0.8% in November). The S&P 500 (2,792.81) stays above its 20d moving average (2,761.62 – positive slope) and 50d moving average (2,647.71 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Monday with the exception of the CAD, the GBP and the EUR. On the economic data front, construction spending decreased by 0.6% MoM in December (estimated +0.1%) from +0.8% in November.
The Euro was bearish against all of its major pairs. The euro zone PPI was up by 0.4% in January (+0.3% expected) after a 0.8% drop a month earlier. The UK PMI construction index fell to 49.5 in February (50.5 expected) from 50.6 in January.
The Australian dollar was higher against most of its major pairs with the exception of the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was up $0.7 to $56.46. The contract was above its 20D MA (@ $55.29) and above its 50D MA (@ $52.48).
Gold was down $6.8 to $1286.6. The precious metal was below its 20D MA (@ $1317) and below its 50D MA (@ $1301).
Copper Future (MAY 19) on Comex was down 2c to 291.2c/lb. The contract was above its 20D MA (@ 286.8c) and above its 50D MA (@ 275.66c). In Europe, the London Metal Exchange reported its copper inventories decreased 2675 tons to 123425 tons.