General Market Comment 25.09.19

U.S. indices were under pressure after House of Representatives Speaker and Democrat Nancy Pelosi said she will meet with Democratic lawmakers to consider opening impeachment proceedings against President Trump on Tuesday. The biggest company losers were in the Semiconductors & Semiconductor Equipment (-1.79%), Media (-1.68%) and Energy (-1.63%) sectors.

On the economic data front, the Conference Board Consumer Confidence dropped to 125.1 in September (vs. 133.0 expected) from 135.1 in August. On Wednesday, we expect new homes sales to grow 3.6% MoM to an annualized rate of 658K units in August.

The S&P 500 (2966.60) trades below its 20d moving average (2,967.51 – positive slope) but above its 50d moving average (2,950.01 – negative slope).

European markets are expected to open on a negative note.

Foreign Exchange

The US dollar was bearish against all of its major pairs on Tuesday. On the economic data front, US Consumer Confidence dropped to 125.1 which was lower then estimated 133 for September compared to 135.1 in August. On Wednesday we expect US MBA Mortgage Applications for the week ending September 20th and Monthly US Homes Sales which are expected to rise 23K in August from 635K in July.

The Euro was bearish against most of its major pairs with the exception of the CAD and USD. In Europe, the IFO Germany Business Expectations index fell to its lowest level since 2009 at 90.8 in September versus 92.0 expected and 91.3 in August. Also, U.K. Supreme Court judged Prime Minister Boris Johnson Parliament suspension as Unlawful and called for the parliament to meet as soon as possible.

The Australian dollar was mixed to 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 down $1.5 to $57.15. The contract was above its 20D MA (@ $56.83) and above its 50D MA (@ $55.95).

Gold was up $9.3 to $1531.5. The precious metal was above its 20D MA (@ $1514) and above its 50D MA (@ $1489).

Copper Future (DEC 19) on Comex was about flat to 260.45c/lb. The contract was below its 20D MA (@ 260.84c) and below its 50D MA (@ 262.74c). In Europe, the London Metal Exchange reported its copper inventories decreased 3400 tons to 280150 tons.