General Market Comment 25.03.19

U.S. indices closed mixed on Monday. Shares in the Semiconductors & Semiconductor Equipment (-1.28%), Technology Hardware & Equipment (-0.88%) and Banks (-0.58%) sectors ended on a negative note while shares in the Consumer Durables & Apparel (+0.84%), Retailing (+0.75%) and Automobiles & Components (+0.41%) sectors closed in the green zone. On the economic data front, the Chicago Federal National Activity Index decreased to -0.29 in February (estimated -0.38) from -0.25 in January. Also, the Dallas Federal Manufacturing Activity Index declined to 8.3 in March (forecasted 8.5) from 13.1 in February. The S&P 500 (2,798.36) stays above both its 20d moving average (2,799.04 – flat slope) and 50d moving average (2,738.24 – 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 Monday with the exception of the GBP. On the economic data front, the Chicago federal national activity index decreased to -0.29 in February (estimated -0.38) from -0.25 in January. Also, the Dallas federal manufacturing activity declined to 8.3 in March (forecasted 8.5) compared to 13.1 in the previous month. 

The Euro was mixed against its major pairs. The Germany IFO business climate index bounced in March to 99.6 (98.5 expected) from 98.7 a month earlier (revised from 98.5). 

The Australian dollar was higher against its major pairs except for the NZD.

Commodities

After the close of Wall Street, WTI Crude Future (MAY 19) was about flat to $58.95. The contract was above its 20D MA (@ $57.93) and above its 50D MA (@ $55.9).

Gold was up $8.7 to $1322.4. The precious metal was above its 20D MA (@ $1304) and above its 50D MA (@ $1307).

Copper Future (MAY 19) on Comex was up 1.3c to 285.55c/lb. The contract was below its 20D MA (@ 291.39c) and above its 50D MA (@ 282.95c). In Europe, the London Metal Exchange reported its copper inventories decreased 1525 tons to 173800 tons.