U.S. indices closed lower on Monday after President Trump tweeted that he will increase tariffs on $200B worth of Chinese goods from 10% to 25% on Friday. Shares in the Consumer Durables & Apparel (-1.63%), Semiconductors & Semiconductor Equipment (-1.52%) and Technology Hardware & Equipment (-1.38%) sectors took a hit while shares in the Health Care Equipment & Services (+1.13%), Food & Staples Retailing (+0.39%) and Pharmaceuticals, Biotechnology & Life Sciences (+0.17%) sectors gained a bit of strength. The S&P 500 (2,932.47) stays above both its 20d moving average (2,915.96 – positive slope) and 50d moving average (2,854.99 – positive slope).
European markets are expected to open on a negative note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Monday with the exception of the JPY. On the economic data front, there was no data released.
The Euro was bullish against all of its major pairs with the exception of the JPY. The euro zone PMI services index was 52.8 in April in final estimation vs 52.5 in first reading and 53.3 a month earlier. The PMI composite index was 51.5 in final reading vs 51.3 in first one and 51.6 in March. Separately, the euro zone retail sales were flat in March (-0.1% expected) after a 0.5% rise in February.
The Australian dollar was lower against all of its major pairs except for the NZD and the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (JUN 19) was up $0.9 to $62.85. The contract was below its 20D MA (@ $64.01) and above its 50D MA (@ $61.09).
Gold was about flat to $1280.3. The precious metal was below its 20D MA (@ $1282) and below its 50D MA (@ $1293).
Copper Future (JUL 19) on Comex was up 2.6c to 284.5c/lb. The contract was below its 20D MA (@ 289.87c) and below its 50D MA (@ 291.03c). In Europe, the London Metal Exchange reported its copper inventories decreased 3675 tons to 224600 tons.