General Market Comment 30.04.19

U.S. indices closed mixed on Tuesday. Shares in the Media (-3.21%), Technology Hardware & Equipment (-1.24%) and Automobiles & Components (-0.79%) sectors were under pressure while shares in the Utilities (+1.67%), Household & Personal Products (+1.59%) and Food, Beverage & Tobacco (+1.21%) sectors ended on a positive note. On the economic data front, employment cost index rose 0.7% QoQ in 1Q (as expected). The MNI Chicago PMI dropped to 52.6 in April (estimated 58.5) from 58.7 in March. Also, pending home sales increased by 3.8% MoM in March (forecasted +1.5%). Finally, the Conference Board consumer confidence index climbed to 129.2 in April (expected 126.8) from 124.2 in March. The S&P 500 (2,945.83) stays above both its 20d moving average (2,905.63 – positive slope) and 50d moving average (2,843.25 – 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 Tuesday with the exception of the AUD. On the economic data front, employment cost index improved by 0.7% in 1Q, as expected and at the same pace as the previous quarter. The MNI Chicago PMI decreased to 52.6 in April (estimated 58.5) from 58.7 in March. Also, pending home sales increased by 3.8% MoM in March (forecasted 1.5%) vs. a decline of 1% in February. Finally, the Conference Board consumer confidence index improved to 129.2 in April (expected 126.8) compared to 124.2 a month earlier. 

The Euro was bullish against all of its major pairs except for the CAD and the GBP. The euro zone GDP growth was 0.4% in 1Q in first estimation (+0.3% expected) vs +0.2% in the previous quarter. Separately, the unemployment rate fell to 7.7% in March, its lowest level since September 2008, from 7.8% a month earlier. The Germany CPI growth was 2% YoY in April in first reading (+1.5% anticipated) after a 1.3% rise in March. The French GDP growth was 0.3% in 1Q in first estimation, as anticipated, and at the same growth pace than in 4Q18. 

The Australian dollar was bearish against all of its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (JUN 19) was about flat to $63.85. The contract was below its 20D MA (@ $64.02) and above its 50D MA (@ $60.72).

Gold was up $4 to $1283.9. The precious metal was below its 20D MA (@ $1285) and below its 50D MA (@ $1298).

Copper Future (JUL 19) on Comex was about flat to 290.6c/lb. The contract was below its 20D MA (@ 292.09c) and below its 50D MA (@ 291.86c). In Europe, the London Metal Exchange reported its copper inventories decreased 3050 tons to 229175 tons.