U.S. indices closed higher on Tuesday, led by shares in the Semiconductors & Semiconductor Equipment (+2.06%), Software & Services (+1.52%) and Technology Hardware & Equipment (+1.45%) sectors. On the economic data front, the NFIB small business optimism index rose to 103.5 in April (estimated 102.0) from 101.8 in the previous month. Also, the import price index increased by 0.2% MoM in April (forecasted +0.7%). In other news, the U.S. Energy Information Administration (EIA) “revised its price forecast for Brent crude oil upward” as it now expects OPEC production to decline by 1.9M b/d in 2019 vs. its previous forecast of 1M b/d. The S&P 500 (2,834.41) stays below its 20d moving average (2,905.88 – negative slope) and 50d moving average (2,862.96 – positive slope).
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Tuesday with the exception of the CAD and the NZD. On the economic data front, the NFIB small business optimism index improved to 103.5 in April (estimated 102) from 101.8 in the previous month. Also, the import price index increased by 0.2% MoM in April (forecasted 0.7%) from 0.6% in March.
The Euro was bearish against all of its major pairs with the exception of the JPY, the GBP and the CHF. The euro-zone industrial production fell 0.3% in March, as expected, after a 0.1% decrease in February. In Germany, the ZEW investor confidence index declined to -2.1 in May (+5 anticipated) from 3.1 the month before. The UK ILO unemployment rate fell to 3.8% for the January-March period from 3.9% for the previous period. Economists anticipated it to be flat.
The Australian dollar was higher against all of its major pairs except for the NZD and the CAD.
Commodities
After the close of Wall Street, WTI Crude Future (JUN 19) was up $0.7 to $61.71. The contract was below its 20D MA (@ $63.25) and above its 50D MA (@ $61.61). In other news, the U.S. Energy Information Administration (EIA) “revised its price forecast for Brent crude oil upward” as it now expects OPEC production to decline by 1.9M b/d in 2019 vs. its previous forecast of 1M b/d.
Gold was down $2.7 to $1297.2. The precious metal was above its 20D MA (@ $1281) and above its 50D MA (@ $1292).
Copper Future (JUL 19) on Comex was about flat to 272.3c/lb. The contract was below its 20D MA (@ 284.52c) and below its 50D MA (@ 288.72c). In Europe, the London Metal Exchange reported its copper inventories decreased 5100 tons to 198650 tons.