US indices closed higher on Wednesday as the Nasdaq reached its highest level since October 2018. Shares in the Automobiles & Components (+1.23%), Semiconductors & Semiconductor Equipment (+0.88%) and Consumer Durables & Apparel (+0.86%) sectors gained a bit of strength. On the economic data front, mortgage applications declined by 5.6% in week ended April 5th from a jump of 18.6% in the previous week. CPI improved by 0.4% MoM in March, as expected, vs. 0.2% in February and increased by 1.9% YoY in March (forecasted 1.8%) compared to 1.5% a month earlier. In other news, the monthly deficit improved to $146.9B in March (expected $181B) from $208.7B in the prior month. The S&P 500 (2,888.21) stays above both its 20d moving average (2,844.52 – positive slope) and 50d moving average (2,793.07 – 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 Wednesday except for the CHF. On the economic data front, mortgage applications declined by 5.6% in week ended April 5th from a jump of 18.6% in the previous week. CPI improved by 0.4% MoM in March, as expected, vs. 0.2% in February and increased by 1.9% YoY in March (forecasted 1.8%) compared to 1.5% a month earlier. In other news, the monthly deficit improved to $146.9B in March (expected $181B) from $208.7B in the prior month.
The Euro was bearish against all of its major pairs except for the CHF. The ECB kept its main benchmark interest rate at 0%, as anticipated. Mario Draghi said that risks to the euro-zone outlook remain on the downside. The UK GDP was up by 0.2% for the November-February period (stability expected) vs +0.5% for the previous period. Separately, the UK industrial production increased by 0.6% in February (+0.1% anticipated) after a 0.7% rise in January.
The Australian dollar was higher against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (MAY 19) was about flat to $64.45. The contract was above its 20D MA (@ $60.9) and above its 50D MA (@ $57.96). The 14d RSI above 70 (73.48) indicates WTI Crude Future (MAY 19) was overbought. The US Department of Energy reported that, for the week ended 5 April, crude oil inventories increased 7029k barrels compared to the previous week.
Gold was up $4.2 to $1308.3. The precious metal was above its 20D MA (@ $1302) and above its 50D MA (@ $1308).
Copper Future (MAY 19) on Comex was down 1.2c to 292.2c/lb. The contract was above its 20D MA (@ 290.26c) and above its 50D MA (@ 288.36c). In Europe, the London Metal Exchange reported its copper inventories decreased 750 tons to 197525 tons.