US indices closed lower on Wednesday, pressured by shares in the Automobiles & Components (-1.83%), Semiconductors & Semiconductor Equipment (-1.67%) and Health Care Equipment & Services (-1.51%) sectors. On the economic data front, the ADP private jobs increased 183K in February (vs +190K estimated, +300K in January). In other news, the trade deficit widened to $59.8B in December (vs $57.9B deficit expected) from $50.3B in November. Finally, the Federal Reserve released its Beige Book, stating a continued expansion in the economic activity in late January and February despite the Government shutdown and reported upward price pressures from tariffs on certain goods and services. The S&P 500 (2,771.45) stays above its 20d moving average (2,766.45 – positive slope) and 50d moving average (2,659.44 – positive slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Wednesday with the exception of the JPY. On the economic data front, mortgage applications declined by 2.5% in week ended March 1st from a rise of 5.3% in the previous week. The ADP employment change fell to 183k in February (estimated 190k) vs. 300k in January. In other news, the trade deficit dug deeper towards $59.8B in December (expected $57.9B) from $50.3B a month earlier. Finally, the Fed released its Beige Book, stating a continued expansion in the economic activity in late January and February despite the Government shutdown and reported upward price pressures from tariffs on certain goods and services.
The Euro was bullish against all of its major pairs with the exception of the JPY. The OECD cut its 2019 GDP growth forecast for the euro zone to 1% vs a previous estimate made in November of +1.8%. Separately, according to Bloomberg, the ECB “is said to cut outlook by enough to warrant new loans”. The German PMI construction index climbed to 54.7 in February from 50.7 a month earlier.
The Australian dollar was lower against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was about flat to $56.22. The contract was above its 20D MA (@ $55.49) and above its 50D MA (@ $52.83). The US Department of Energy reported that, for the week ended 1 March, crude oil inventories increased 7069k barrels compared to the previous week.
Gold was about flat to $1287. The precious metal was below its 20D MA (@ $1314) and below its 50D MA (@ $1302).
Copper Future (MAY 19) on Comex was about flat to 292.4c/lb. The contract was above its 20D MA (@ 287.94c) and above its 50D MA (@ 276.54c). In Europe, the London Metal Exchange reported its copper inventories decreased 1725 tons to 116875 tons.