U.S. indices closed lower on Monday, pressured by shares in the Information Technology (-1.75%), Real Estate (-1.62%) and Materials (-1.46%) sectors. On the economic data front, the Chicago Fed National Activity Index fell to -0.45 in April (vs -0.20 expected) from 0.05 in March. The S&P 500 (2,840.23) stays below its 20d moving average (2,896.21 – negative slope) and breaks below 50d moving average (2,870.44 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was under pressure against all of its major pairs on Monday. On the economic data front, the Chicago federal national activity index fell to -0.45 in April (estimated -0.20) from 0.05 in the previous month.
The Euro was lower against most of its major pairs except for the GBP and USD. In Europe, the German PPI index increased by 0.5% in April (+0.3% expected) after a 0.1% decline a month earlier. According to Rightmove, the UK house prices were up by 0.9% in May after a 1.1% rise in April.
The Australian dollar was higher against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JUN 19) was about flat to $63.15. The contract was above its 20D MA (@ $62.91) and above its 50D MA (@ $62.05).
Gold was about flat to $1277.9. The precious metal was below its 20D MA (@ $1283) and below its 50D MA (@ $1291).
Copper Future (JUL 19) on Comex was down 1.1c to 272.75c/lb. The contract was below its 20D MA (@ 280.58c) and below its 50D MA (@ 287.28c). In Europe, the London Metal Exchange reported its copper inventories decreased 1825 tons to 188725 tons.