US indices closed mixed on Wednesday. Shares in the Semiconductors & Semiconductor Equipment (-2.25%), Energy (-1.44%) and Banks (-1.41%) sectors were under pressure while shares in the Utilities (+1.33%), Pharmaceuticals, Biotechnology & Life Sciences (+0.9%) and Commercial & Professional Services (+0.74%) sectors gained traction. On the economic data front, MBA Mortgage Applications grew by 26.8% in week ending June 7 compared with 1.5% in the previous week. Next, the CPI grew by 0.1 % for the month of May (estimated 0.1%) compared with 0.3% for the previous month. On a YoY basis the CPI grew by 1.8% for May (estimated 1.9%) vs. 2% for May 2018. Lastly, the monthly budget statement presented a deficit of $207.8B in May (estimated $202.5B) vs. a deficit of $146.8B for the previous month. The S&P 500 (2,879.84) stays above its 20d moving average (2,833.26 – positive slope) and its 50d moving average (2,873.16 – flat slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Wednesday. On the economic data front, MBA Mortgage Applications grew by 26.8% in week ending June 7 compared with 1.5% in the previous week. Next, the CPI grew by 0.1 % for the month of May (estimated 0.1%) compared with 0.3% for the previous month. On a YoY basis the CPI grew by 1.8% for May (estimated 1.9%) vs. 2% for May 2018. Lastly, the monthly budget statement presented a deficit of $207.8B in May (estimated $202.5B) vs. a deficit of $146.8B for the previous month.
The Euro was bearish against all of its major pairs with the exception of the NZD, JPY and USD. In Europe, there was no major economic data released yesterday.
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JUL 19) was down $2.2 to $51.03. The contract was below its 20D MA (@ $57.16) and below its 50D MA (@ $60.89). The 14d RSI below 30 (26.67) indicates WTI Crude Future (JUL 19) was oversold. The US Department of Energy reported that, for the week ended 7 June, crude oil inventories increased 2206k barrels compared to the previous week.
Gold was up $6.2 to $1333.1. The precious metal was above its 20D MA (@ $1302) and above its 50D MA (@ $1292).
Copper Future (JUL 19) on Comex was down 2.3c to 264.8c/lb. The contract was below its 20D MA (@ 267.92c) and below its 50D MA (@ 279.56c). In Europe, the London Metal Exchange reported its copper inventories decreased 325 tons to 210900 tons.