U.S. indices closed mixed on Wednesday. Shares in the Semiconductors & Semiconductor Equipment (+3.43%), Technology Hardware & Equipment (+1.79%) and Energy (+1.54%) sectors traded higher while shares in the Utilities (-2.15%), Real Estate (-1.95%) and Household & Personal Products (-1.9%) sectors traded lower. On the economic data front, durable Goods Orders decreased by 1.3% MoM in May (estimated -0.3%, -2.8% in April). Also, wholesale inventories increased by 0.4% MoM in May (estimated +0.5%, +0.9% in April). The S&P 500 (2,913.78) stays above its 20d moving average (2,873.88 – positive slope) and its 50d moving average (2,879.53 – flat slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was mixed against its major pairs on Wednesday. On the economic data front, MBA Mortgage Applications increased by 1.3% in week ending June 21 compared with a 3.4% decrease in the previous week. Durable Goods Orders decreased by 1.3% in preliminary estimates in May (estimated -0.3%) vs. a 2.8% decrease in the previous month. Lastly, Wholesale Inventories increased by 0.4% in preliminary estimates in May (estimated 0.5%) compared with a 0.9% increase in the previous month.
The Euro was bullish against all of its major pairs with the exception of the NZD, AUD and CAD. In Europe, the German GfK consumer confidence index slid to 9.8 in July (10 expected) from 10.1 in June. Separately, the French consumer confidence index increased to 101 in June (100 anticipated) from 99 a month earlier.
The Australian dollar was bullish against all of its major pairs with the exception of the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 19) was up $1.4 to $59.23. The contract was above its 20D MA (@ $54.48) and below its 50D MA (@ $59.35). The US Department of Energy reported that, for the week ended 21 June, crude oil inventories fell 12788k barrels compared to the previous week.
Gold was down $14.1 to $1409.3. The precious metal was above its 20D MA (@ $1351) and above its 50D MA (@ $1309). The 14d RSI above 70 (76.72) indicates gold was overbought.
Copper Future (SEP 19) on Comex was down 1.9c to 271.55c/lb. The contract was above its 20D MA (@ 267c) and below its 50D MA (@ 275.12c). In Europe, the London Metal Exchange reported its copper inventories decreased 1175 tons to 241700 tons.