U.S. indices ended negative on Tuesday pressured by share from the Pharmaceuticals, Biotechnology & Life Sciences (-0.97%), Consumer Services (-0.92%), Telecommunication Services (-0.81%) sectors while Household & Personal Products (+2.02%), Energy (+1.09%), Real Estate (+0.89%) sectors were on the upside, limiting the corrective move. On the economic data front, Personal Income increased by 0.4% MoM in June (estimated +0.4%) and Personal Spending rose 0.3% (estimated +0.3%). The Conference Board Consumer Confidence jumped to its highest level of the year at 135.7 in July (estimated 125.0) from 124.3 in June. The S&P 500 (3,013.18) stays above its 20d moving average (2,998.49 – positive slope) and its 50d moving average (2,921.46 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all its major pairs on Tuesday with the exception of the GBP, AUD and NZD. On the economic data front, Personal Income increased by 0.4% in June (estimated 0.4%) compared with a 0.4% rise in the previous month. Personal Spending increased by 0.3% in June (estimated 0.3%) vs. a 0.5% rise in the prior month. Consumer Confidence jumped to its highest level of the year at 135.7 in July (estimated 125) vs. 124.3 in the prior month.
The Euro was bullish against all of its major pairs with the exception of the JPY. In Europe, the euro-zone consumer confidence was -6.6 in July in second reading, as in first one, vs -7.2 a month earlier. Separately, the economic confidence index fell to 102.7 (102.6 expected) vs 103.3 in June. The German CPI index increased by 1.5% in July in first estimation (+0.3% anticipated) after a 0.3% rise in June. YoY, the inflation rate was 1.7% vs 1.6% in June and 1.5% expected. Separately, the GfK consumer confidence index was 9.7 for August, as expected, vs 9.8 in July. The French GDP growth slowed to 0.2% in 2Q in first reading from +0.3% in 1Q. It was expected to be +0.3%.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 19) was up $1.3 to $58.17. The contract was above its 20D MA (@ $57.49) and above its 50D MA (@ $56.83).
Gold was up $4 to $1430.8. The precious metal was above its 20D MA (@ $1417) and above its 50D MA (@ $1373).
Copper Future (SEP 19) on Comex was down 4.1c to 267.7c/lb. The contract was below its 20D MA (@ 269.37c) and below its 50D MA (@ 268.55c). In Europe, the London Metal Exchange reported its copper inventories decreased 450 tons to 292500 tons.