General Market Comment 08.04.19

U.S. indices closed mixed on Monday. Shares in the Utilities (-0.73%), Capital Goods (-0.66%) and Real Estate (-0.51%) sectors were under pressure while shares in the Technology Hardware & Equipment (+1.17%), Household & Personal Products (+0.76%) and Automobiles & Components (+0.68%) sectors ended in the green zone. On the economic data front, factory orders declined 0.5% MoM in February, in-line with estimates. Also, final readings of February durable goods orders was confirmed at -1.6% MoM (as expected and previously estimated). The S&P 500 (2,895.77) stays above both its 20d moving average (2,836.32 – positive slope) and 50d moving average (2,783.42 – positive slope).

European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was bearish against all of its major pairs on Monday. On the economic data front, factory orders declined by 0.5% in February, in-line with estimates, after remaining unchanged in January. Durable goods orders decreased by 1.6% in February, as expected, from an improvement of 0.3% in the prior month. 

The Euro was bullish against all of its major pairs except for the CAD. The Germany trade balance excess widened to E17.9B in February (E16B expected) from E14.6B a month earlier. Exports decreased 1.3% while imports slid 1.6%. 

The Australian dollar was bullish against all of its major pairs except for the CAD and the EUR.

Commodities

After the close of Wall Street, WTI Crude Future (MAY 19) was up $1.4 to $64.44. The contract was above its 20D MA (@ $63.32) and above its 50D MA (@ $63.32). The 14d RSI above 70 (75.5) indicates WTI Crude Future (MAY 19) was overbought.

Gold was up $6.1 to $1297.8. The precious metal was below its 20D MA (@ $1302) and below its 50D MA (@ $1308).

Copper Future (MAY 19) on Comex was up 4c to 293.4c/lb. The contract was above its 20D MA (@ 290.31c) and above its 50D MA (@ 287.5c). In Europe, the London Metal Exchange reported its copper inventories decreased 750 tons to 197550 tons.