General market Comment 24.09.19

U.S. indices closed little changed on Monday as weak data out of Europe dampened investor sentiment. Manufacturing activity in Germany fell to its lowest level since the financial crisis. Shares in the Consumer Durables & Apparel (+0.97%), Semiconductors & Semiconductor Equipment (+0.82%) and Household & Personal Products (+0.76%) sectors moved higher while shares in the Transportation (-0.7%), Health Care Equipment & Services (-0.69%) and Pharmaceuticals, Biotechnology & Life Sciences (-0.55%) sectors were in the red.

On the economic data front, the Markit U.S. Manufacturing PMI rose to 51.0 in September (vs. 50.4 expected) from 50.3 in August, and the Services PMI climbed to 50.9 (vs. 51.4 expected) from 50.7. On Tuesday, the Conference Board Consumer Confidence Index is expected to drop to 133.0 for September from 135.1 in August.

The S&P 500 (2991.78) trades above both its 20d moving average (2,963.10 – positive slope) and 50d moving average (2,950.97 – flat slope).

European markets are expected to open on a positive note.

Foreign Exchange

The Euro was bearish against most of its major pairs with the exception of the GBP. In Europe, the ECB President Draghi said “We still think the probability of recession for the euro area is small, but it’s gone up.” The eurozone manufacturing purchasing managers index (PMI) came in at 83-month lows of 45.6 in September versus 47.3 expected and 47.0 last month while the services PMI dropped to eight-month lows of 52.0 versus 53.3 expected and 53.5 last month. In Germany, the manufacturing purchasing managers index (PMI) came in at 41.4 in September versus 44 expected and 43.5 last month while the services PMI dropped to 52.5 versus 54.3 expected and 54.8 last month.

The Australian dollar was bullish against most of its major pairs with the exception of the NZD and CHF.

Commodities

After the close of Wall Street, WTI Crude Future (NOV 19) was about flat to $58.47. The contract was above its 20D MA (@ $56.64) and above its 50D MA (@ $56).

Gold was up $6.9 to $1523.8. The precious metal was above its 20D MA (@ $1514) and above its 50D MA (@ $1486).

Copper Future (DEC 19) on Comex was about flat to 261.4c/lb. The contract was above its 20D MA (@ 260.58c) and below its 50D MA (@ 262.97c). In Europe, the London Metal Exchange reported its copper inventories decreased 3600 tons to 283550 tons.