US indices closed lower on Tuesday, pressured by shares in the Capital Goods (-1.03%), Commercial & Professional Services (-0.85%) and Utilities (-0.69%) sectors. On the economic data front, the NFIB Small Business Optimism index beat estimates reaching 105 in May (estimated 102) compared with 103.5 in the previous month. PPI Final Demand decelerated slightly by 0.1% in May and in-line with estimates vs. 0.2% in April. Next, PPI Final Demand grew 1.8% YoY for May (estimated 2%) compared to 2.2% in May of 2018. The S&P 500 (2,885.72) stays above its 20d moving average (2,830.95 – positive slope) and its 50d moving average (2,872.93 – 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 except for the GBP and EUR on Tuesday. On the economic data front, the NFIB Small Business Optimism index beat estimates reaching 105 in May (estimated 102) compared with 103.5 in the previous month. PPI Final Demand decelerated slightly by 0.1% in May and in-line with estimates vs. 0.2% in April. Next, PPI Final Demand grew 1.8% YoY for May (estimated 2%) compared to 2.2% in May of 2018.
The Euro was bullish against all of its major pairs with the exception of the GBP. In Europe, the UK ILO unemployment rate was flat at 3.8% in April, as expected.
The Australian dollar was bearish against all of its major pairs except for the GBP and EUR.
Commodities
After the close of Wall Street, WTI Crude Future (JUL 19) was about flat to $53.32. The contract was below its 20D MA (@ $57.7) and below its 50D MA (@ $61.11).
Gold was about flat to $1326.8. The precious metal was above its 20D MA (@ $1300) and above its 50D MA (@ $1291).
Copper Future (JUL 19) on Comex was about flat to 266.9c/lb. The contract was below its 20D MA (@ 268.29c) and below its 50D MA (@ 280.12c). In Europe, the London Metal Exchange reported its copper inventories decreased 125 tons to 211225 tons.