U.S. indices closed lower on Tuesday, dragged lower by shares in the Capital Goods (-0.74%), Consumer Durables & Apparel (-0.66%) and Insurance (-0.56%) sectors. On the economic data front, final readings of February Markit U.S. services PMI posted 56.0 (vs 56.2 expected and previously estimated) and Markit U.S. composite PMI was 55.5 (vs 55.8 preliminary). Also, the ISM Non-manufacturing Index rose to 59.7 in February (vs 57.4 forecasted) from 56.7 in January. In other news, new home sales climbed to 621K in December (vs 600K expected) from 599k in November. The S&P 500 (2,789.65) stays above its 20d moving average (2,764.86 – positive slope) and 50d moving average (2,653.36 – positive slope).
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Tuesday. On the economic data front, the Markit US services PMI increased to 56 in February (estimated 56.2) from 54.2 in January while Markit US composite PMI reached 55.5 in February compared to 54.4 a month earlier. Also, the ISM non-manufacturing index improved to 59.7 in February (forecasted 57.4) from 56.7 in the previous month. In other news, new home sales grew to 621k in December (expected 600k) vs. 599k in November. Finally, the monthly surplus in January fell to $8.7B (estimated $10B) from $49.2B in the prior month.
The Euro was under pressure against all of its major pairs with the exception of the CHF. The euro-zone PMI services index was 52.8 in final estimation February vs 52.3 in first one and 51.2 in January. The UK PMI services index climbed to 51.3 in February (+49.9 expected) from 51.1 in January.
The Australian dollar was mixed against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was about flat to $56.54. The contract was above its 20D MA (@ $55.38) and above its 50D MA (@ $52.64).
Gold was about flat to $1287.7. The precious metal was below its 20D MA (@ $1315) and below its 50D MA (@ $1301).
Copper Future (MAY 19) on Comex was up 2.9c to 293.75c/lb. The contract was above its 20D MA (@ 287.47c) and above its 50D MA (@ 276.1c). In Europe, the London Metal Exchange reported its copper inventories decreased 4825 tons to 118600 tons.