US indices closed mixed on Wednesday, helped by shares in the Food & Staples Retailing (+1.73%), Materials (+1.32%), and Household & Personal Products (+1.18%) sectors but pressured by shares in the Banks (-2.15%), Energy (-0.76%), and Diversified Financials (-0.72%) sectors. On the economic data front, MBA Mortgage Applications increased by 5.3% in week ending August 2 vs a 1.4% decrease in the prior week. The S&P 500 (2,883.98) trades below its 20d moving average (2,976.92 – negative slope) and its 50d moving average (2,930.76 – positive 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 Wednesday with the exception of the NZD. On the economic data front, MBA Mortgage Applications increased by 5.3% in week ending August 2 vs a 1.4% decrease in the prior week.
The Euro was bullish against all of its major pairs with the exception of the CHF and JPY. In Europe, the German industrial production fell by 1.5% in June after a 0.1% rise a month earlier (revised from +0.3%). Economists anticipated a 0.5% decline. French trade balance deficit widened to £5.19B in June (£4.12B expected) from £3.28B in May. According to Halifax, UK house prices slid by 0.2% in July (+0.3% anticipated) after a 0.4% decline in June (revised from -0.3%).
The Australian dollar was mixed against all its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 19) was down $1.3 to $52.32. The contract was below its 20D MA (@ $56.55) and below its 50D MA (@ $56.13). The US Department of Energy reported that, for the week ended 2 August, crude oil inventories increased 2385k barrels compared to the previous week.
Gold was up $22.6 to $1497. The precious metal was above its 20D MA (@ $1432) and above its 50D MA (@ $1394). The 14d RSI above 70 (71.78) indicates gold was overbought.
Copper Future (SEP 19) on Comex was up 3c to 258.75c/lb. The contract was below its 20D MA (@ 267.41c) and below its 50D MA (@ 267.31c). In Europe, the London Metal Exchange reported its copper inventories decreased 2025 tons to 275950 tons.