U.S. indices closed lower on Wednesday, pressured by shares in the Semiconductors & Semiconductor Equipment (-1.22%), Automobiles & Components (-0.89%) and Pharmaceuticals, Biotechnology & Life Sciences (-0.85%) sectors. On the economic data front, trade deficit narrowed to $51.1B in January (estimated $57.0B) from $59.9B in the previous month. The S&P 500 (2,805.37) stays above both its 20d moving average (2,800.92 – flat slope) and 50d moving average (2,747.14 – positive slope).

European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was bullish against all of its major pairs on Wednesday with the exception of the GBP and the JPY. On the economic data front, MBA mortgage applications rose 8.9% in week ended March 22nd from an improvement of 1.6% in the prior week. The trade deficit improved to $51.1B in January (estimated $57B) from $59.9B in the previous week. 

The Euro was bearish against all of its major pairs with the exception of the NZD and the AUD. Mario Draghi said the ECB would be ready to take measures in order to reduce the impact of negative interest rates. French consumer confidence index climbed to 96 in March, as expected, from 95 in February.

The Australian dollar was lower against all of its major pairs except for the NZD.

Commodities

After the close of Wall Street, WTI Crude Future (MAY 19) was about flat to $59.4. The contract was above its 20D MA (@ $58.23) and above its 50D MA (@ $56.2). The US Department of Energy reported that, for the week ended 22 March, crude oil inventories increased 2800k barrels compared to the previous week.

Gold was down $6 to $1309.6. The precious metal was above its 20D MA (@ $1302) and above its 50D MA (@ $1308).

Copper Future (MAY 19) on Comex was about flat to 286.2c/lb. The contract was below its 20D MA (@ 290.41c) and above its 50D MA (@ 283.75c). In Europe, the London Metal Exchange reported its copper inventories decreased 1550 tons to 170725 tons.