US indices closed slightly negative on Monday pressured by shares in the Household & Personal Products (-1%), Materials (-0.74%) and Utilities (-0.67%) sectors after uncertainties around the new U.S.-China trade pact emerged. The S&P 500 (2,966.15) remains above its 20d moving average (2,959.35 – negative slope) and 50d moving average (2,936.36 – flat slope).
On the economic data front, the Empire Manufacturing Index rose to 4.0 beating the 1.0 estimate for October compared to 2.0 in the prior month. On Tuesday, economists expect the Monthly Budget Statement for September to be released between October 15th and October 18th. It is anticipated at $83.0B compared to $119.1B in August.
WTI crude oil futures closed down 2.32% on Monday as doubts over the U.S.-China “Phase One” deal developed.
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Monday with the exception of the CHF. On the economic data front, the Empire Manufacturing Index rose to 4.0 beating the 1.0 estimate for October compared to 2.0 in the prior month. On Tuesday, economists expect the Monthly Budget Statement for September to be released between October 15th and October 18th. It is anticipated at $83.0B compared to $119.1B in August.
The Euro was bullish against most of its major pair with the exception of the CHF, JPY and USD. In Europe, euro-zone industrial production increased by 0.4% in August (+0.3% expected) after a 0.4% decline a month earlier.
The Australian dollar was bearish against most of its major pairs with the exception of the NZD and GBP.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 19) was down $1.2 to $53.46. The contract was below its 20D MA (@ $55.17) and below its 50D MA (@ $55.21).
Gold was up $3.2 to $1492.3. The precious metal was below its 20D MA (@ $1501) and below its 50D MA (@ $1507).
Copper Future (DEC 19) on Comex was about flat to 263.15c/lb. The contract was above its 20D MA (@ 259.36c) and above its 50D MA (@ 259.5c). In Europe, the London Metal Exchange reported its copper inventories decreased 4975 tons to 277350 tons.