U.S. indices closed higher on Wednesday, boosted by shares in the Media (+2.51%), Technology Hardware & Equipment (+1.1%) and Household & Personal Products (+1.06%) sectors. On the economic data front, retail sales declined 0.2% MoM in April (forecasted +0.2%, +1.7% in March). Also, the Empire Manufacturing Index jumped to 17.8 in May (estimated 8.0) from 10.1 in April. In other news, industrial production decreased 0.5% MoM in April (expected to remain flat, +0.2% in March). The S&P 500 (2,850.96) stays below its 20d moving average (2,903.07 – negative slope) and 50d moving average (2,864.19 – 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 JPY. On the economic data front, mortgage applications declined by 0.6% in week ended May 10th from an increase of 2.7% in the prior week. The empire manufacturing index jumped to 17.8 in May (estimated 8) from 10.1 in April. Also, retail sales declined by 0.2% MoM in April (forecasted +0.2%) from a rise of 1.7% in March. In other news, industrial production decreased by 0.5% MoM in April (expected to remain flat) compared to an improvement of 0.2% a month earlier.
The Euro was bullish against all of its major pairs with the exception of the CAD and the JPY. The euro zone GDP growth was confirmed at 0.4% in 1Q in second reading as in first one, vs +0.2% in 4Q18. The German GDP growth was 0.4% in 1Q, as anticipated, after being flat in the previous quarter.
The Australian dollar was lower against all of its major pairs except for the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (JUN 19) was about flat to $62.24. The contract was below its 20D MA (@ $63.16) and above its 50D MA (@ $61.71). The US Department of Energy reported that, for the week ended 10 May, crude oil inventories increased 5431k barrels compared to the previous week.
Gold was about flat to $1296.3. The precious metal was above its 20D MA (@ $1282) and above its 50D MA (@ $1292).
Copper Future (JUL 19) on Comex was up 2.2c to 274.65c/lb. The contract was below its 20D MA (@ 283.56c) and below its 50D MA (@ 288.34c). In Europe, the London Metal Exchange reported its copper inventories decreased 4400 tons to 194250 tons.