General Market Comment 17.04.19

U.S. indices closed lower on Wednesday, dragged by shares in the Health Care Equipment & Services (-3.58%), Pharmaceuticals, Biotechnology & Life Sciences (-2.37%) and Telecommunication Services (-1.33%) sectors. On the economic data front, trade deficit narrowed to $49.4B in February (forecasted $53.4B) from $51.1B in the prior month. In other news, wholesale inventories rose 0.2% MoM in February (expected +0.3%, +1.2% in January). The S&P 500 (2,900.45) stays above both its 20d moving average (2,863.93 – positive slope) and 50d moving average (2,812.16 – 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 CAD and the EUR. On the economic data front, MBA mortgage applications decreased by 3.5% in week ended April 12th from a decline of 5.6% in the previous week. Also, the trade deficit improved to $49.4B in February (forecasted $53.4B) compared to $51.1B in the prior month. In other news, wholesale inventories improved by 0.2% MoM in February (expected 0.3%) vs. 1.2% in January. 

The Euro was bullish against all of its major pairs. The euro-zone CPI growth was 1.4% in March YoY in final estimation, as expected, after +1.5% in February. Separately, EU27 new car registrations fell by 3.9% in March after a 1% slide a month earlier. UK CPI growth was 1.9% in March YoY (2% expected), as in February. 

The Australian dollar was mixed against its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (MAY 19) was about flat to $63.76. The contract was above its 20D MA (@ $62.01) and above its 50D MA (@ $58.85). The US Department of Energy reported that, for the week ended 12 April, crude oil inventories fell 1396k barrels compared to the previous week.

Gold was down $2.4 to $1274.5. The precious metal was below its 20D MA (@ $1297) and below its 50D MA (@ $1305).

Copper Future (JUL 19) on Comex was up 3.1c to 296.95c/lb. The contract was above its 20D MA (@ 291.59c) and above its 50D MA (@ 290.36c). In Europe, the London Metal Exchange reported its copper inventories increased 150 tons to 190650 tons