U.S. indices closed lower on Wednesday, dragged by shares in the Consumer Durables & Apparel (-2.33%), Pharmaceuticals, Biotechnology & Life Sciences (-1.49%) and Utilities (-1.34%) sectors. On the economic data front, the Richmond Federal Manufacturing Index increased to 5 in May (estimated 7) from 3 a month earlier. The S&P 500 (2,783.02) stays below both its 20d moving average (2,863.13 – negative slope) and 50d moving average (2,872.54 – negative 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. On the economic data front, MBA mortgage applications decreased by 3.3% in week ended May 24th from an improvement of 2.4% in the prior week. In other news, Richmond federal manufacturing index increased to 5 in May (estimated 7) from 3 a month earlier.
The Euro was bearish against most of its major pairs with the exception of the NZD. The German unemployment rate unexpectedly increased to 5% in May from 4.9% in April. It was anticipated to be flat. The French 1Q19 GDP growth was confirmed at 1.3%, the same pace than in 4Q18. Separately, the French CPI index increased by 0.2% in May in first reading (+0.3% anticipated) after a 0.3% rise a month earlier.
The Australian dollar was mixed against its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JUL 19) was about flat to $59.08. The contract was below its 20D MA (@ $61.56) and below its 50D MA (@ $62.28).
Gold was about flat to $1280.2. The precious metal was below its 20D MA (@ $1283) and below its 50D MA (@ $1288).
Copper Future (JUL 19) on Comex was down 2.9c to 266.75c/lb. The contract was below its 20D MA (@ 274.36c) and below its 50D MA (@ 284.53c). In Europe, the London Metal Exchange reported its copper inventories decreased 575 tons to 185000 tons.