US indices closed higher on Tuesday as the Dow jumped over 512 points. Shares in the Automobiles & Components (+4.65%), Semiconductors & Semiconductor Equipment (+4.3%) and Consumer Durables & Apparel (+4.18%) sectors gained momentum. On the economic data front, factory orders declined by 0.8% in April (estimated -1%) from an increase of 1.3% in March. Durable goods orders decreased by 2.1% in April vs. a rise of 2.6% a month earlier.
The S&P 500 (2,803.27) stays below both its 20d moving average (2,831.59 – negative slope) and 50d moving average (2,868.06 – flat slope).
European markets are expected to open on a positive note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Tuesday. On the economic data front, factory orders declined by 0.8% in April (estimated -1%) from an increase of 1.3% in March. Durable goods orders decreased by 2.1% in April vs. a rise of 2.6% a month earlier.
The Euro was bearish against all of its major pairs with the exception of the JPY and the USD. The euro zone CPI index rose by 1.2% in May YoY (+1.3% expected), a low since April 2018, after a 1.7% increase in April. Separately, the euro zone unemployment rate fell to 7.6% in April, the lowest since August 2008, from 7.7% in March. It was expected to be flat.
The Australian dollar was higher against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JUL 19) was about flat to $53.59. The contract was below its 20D MA (@ $59.9) and below its 50D MA (@ $61.8). The 14d RSI below 30 (22.32) indicates WTI Crude Future (JUL 19) was oversold.
Gold was about flat to $1326.1. The precious metal was above its 20D MA (@ $1290) and above its 50D MA (@ $1287). The 14d RSI above 70 (70.55) indicates gold was overbought.
Copper Future (JUL 19) on Comex was up 1.9c to 266.85c/lb. The contract was below its 20D MA (@ 271.26c) and below its 50D MA (@ 282.5c). In Europe, the London Metal Exchange reported its copper inventories decreased 25 tons to 211775 tons.