U.S. indices closed higher on Wednesday, led by shares in the Health Care Equipment & Services (+1.49%), Transportation (+1.25%) and Energy (+1.09%) sectors. On the economic data front, MBA mortgage applications increased by 2.3% in week ended March 8th from a decline of 2.5% in the prior week. In other news, PPI final demand improved by 0.1% in February (estimated 0.2%) from a decrease of 0.1% in January. Durable goods orders advanced by 0.4% in a preliminary estimate in January (forecasted -0.4%) compared to an increase of 1.3% a month earlier. Finally, construction spending advanced by 1.3% in January (expected 0.5%) from -0.8% in December. The S&P 500 (2,810.92) stays above its 20d moving average (2,780.43 – positive slope) and 50d moving average (2,692.80 – positive slope).
European markets are expected to open on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Wednesday. On the economic data front, MBA mortgage applications increased by 2.3% in week ended March 8th from a decline of 2.5% in the prior week. In other news, PPI final demand improved by 0.1% in February (estimated 0.2%) from a decrease of 0.1% in January. Durable goods orders advanced by 0.4% in a preliminary estimate in January (forecasted -0.4%) compared to an increase of 1.3% a month earlier. Finally, construction spending advanced by 1.3% in January (expected 0.5%) from -0.8% in December.
The Euro was bullish against all of its major pairs with the exception of the CAD, the CHF and the GBP. The euro-zone industrial production increased by 1.4% in January after falling by 0.9% a month earlier. Economists anticipated a 1% rise.
The Australian dollar was bearish against all of its major pairs except for the USD and the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was up $1.5 to $58.35. The contract was above its 20D MA (@ $56.4) and above its 50D MA (@ $53.98). The US Department of Energy reported that, for the week ended 8 March, crude oil inventories fell 3862k barrels compared to the previous week.
Gold was up $8.6 to $1310.2. The precious metal was below its 20D MA (@ $1311) and above its 50D MA (@ $1304).
Copper Future (MAY 19) on Comex was about flat to 293.15c/lb. The contract was above its 20D MA (@ 290.38c) and above its 50D MA (@ 278.85c). In Europe, the London Metal Exchange reported its copper inventories decreased 950 tons to 111775 tons.