U.S. indices closed mixed on Monday. Shares in the Banks (+3.15%), Automobiles & Components (+2.27%) and Energy (+1.85%) sectors traded higher while shares in the Software & Services (-1.58%), Commercial & Professional Services (-1.26%) and Household & Personal Products (-1.18%) sectors were in the red. On the economic data front, consumer credit increased $23.29B in July (vs. +$16.00B expected). The S&P 500 (2,978.43) trades above its 20d moving average (2,908.43 – positive slope) and its 50d moving average (2,947.55 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against most of its major pairs with the exception of the CHF and JPY, on Monday. On the economic data front, there was no major economic news for today. On Tuesday, August NFIB Small Business Optimism is expected to be released.
The Euro was bullish against most of its major pairs with the exception of the AUD and GBP. In Europe, the Germany trade balance excess increased to E21.4B in July (E17.4B expected) from E16.6B a month earlier. Exports rose by 0.7% while imports declined by 1.5%. UK GDP was up by 0.3% in July MoM after being flat in June. Consensus was a 0.1% rise. Separately, UK industrial production increased by 0.1% in July (-0.3% expected) after a 0.1%; slid the month before.
The Australian dollar was bullish against its major pairs with the exception of the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 19) was up $1.5 to $58.02. The contract was above its 20D MA (@ $55.56) and above its 50D MA (@ $56.26).
Gold was down $7.5 to $1499.2. The precious metal was below its 20D MA (@ $1520) and above its 50D MA (@ $1468).
Copper Future (DEC 19) on Comex was about flat to 262.65c/lb. The contract was above its 20D MA (@ 258.72c) and below its 50D MA (@ 264.06c). In Europe, the London Metal Exchange reported its copper inventories decreased 2925 tons to 310350 tons.