U.S. indices closed mixed on Wednesday. Shares in the Automobiles & Components (-2.87%), Banks (-2.72%) and Insurance (-1.66%) sectors ended in the red zone while shares in the Media (+1.48%), Retailing (+1.07%) and Energy (+0.89%) sectors gained traction. In other news, the U.S. Federal Reserve decided to maintain the federal funds rate at a range of 2.25%-2.50% and lowered its median forecast of future rates to 2.375% from 2.875% for 2019, implying that interest rate would stay unchanged rather than increasing it twice. Also, 2020 median rate forecast was trimmed to 2.625% from 3.125%. The S&P 500 (2,834.23) stays above both its 20d moving average (2,794.52 – positive slope) and 50d moving average (2,724.28 – positive slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Wednesday with the exception of the GBP. On the economic data front, MBA mortgage applications improved by 1.6% in week ended March 15th from an increase of 2.3% in the previous week. In other news, the Fed decided to maintain the federal funds rate at a range of 2.25%-2.5% and downgraded its median assessment of future rates to 2.375% for 2019 (prior 2.875%) and to 2.625% for both 2020 and 2021 (prior 3.125%). Also, most participants in the FOMC expect zero 2019 hikes.
The Euro was bullish against all of its major pairs except for the CHF. The UK CPI was up 0.5% in February (+0.4% expected) after a 0.8% decline a month earlier. YoY, CPI increased by 1.9% (+1.8% anticipated) after a 1.8% rise in January.
The Australian dollar was higher against all of its major pairs with the exception of the NZD, the CHF and the EUR.
Commodities
After the close of Wall Street, WTI Crude Future (APR 19) was up $0.8 to $59.83. The contract was above its 20D MA (@ $57.21) and above its 50D MA (@ $55.1). The US Department of Energy reported that, for the week ended 15 March, crude oil inventories fell 9589k barrels compared to the previous week.
Gold was up $7.3 to $1313.8. The precious metal was above its 20D MA (@ $1305) and above its 50D MA (@ $1305).
Copper Future (MAY 19) on Comex was about flat to 293.2c/lb. The contract was above its 20D MA (@ 292.4c) and above its 50D MA (@ 281.71c). In Europe, the London Metal Exchange reported its copper inventories decreased 1925 tons to 179275 tons