General Market Comment 22.10.19

US indices closed higher on Monday lifted by shares in the Banks (+2.02%), Transportation (+1.91%), Energy (+1.86%) sectors. The S&P 500 is less than 1% away from record highs, a key resistance area for traders. On the economic data front, their was no major data released. The S&P 500 (3,006.72) remains above its 20d moving average (2,958.01 – flat slope) and 50d moving average (2,946.54 – positive slope).

On Tuesday, economists expect Existing Home Sales to release at 5.45 million for September, down from 5.49 million the prior month. The Monthly Budget Statement for September is anticipated to be released between October 22nd and October 25th at 83 billion dollars, down from 119.1 billion dollars in August.

European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was mixed against all of its major pairs on Monday. On the economic data front, their was no major data released. On Tuesday, economists expect Existing Home Sales to release at 5.45 million for September, down from 5.49 million the prior month. The Monthly Budget Statement for September is anticipated to be released between October 22nd and October 25th at 83 billion dollars, down from 119.1 billion dollars in August.

The Euro was bearish against all of its major pairs. In Europe, the German Producer Price Index rose 0.1% in September (-0.1% expected) after a 0.5% decline a month earlier. According to Rightmove, UK house prices increased 0.6% in October after a 0.2% slid in September.

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

Commodities

After the close of Wall Street, WTI Crude Future (NOV 19) was about flat to $53.43. The contract was below its 20D MA (@ $53.94) and below its 50D MA (@ $55.26).

Gold was down $5.6 to $1484.2. The precious metal was below its 20D MA (@ $1496) and below its 50D MA (@ $1506).

Copper Future (DEC 19) on Comex was about flat to 264.5c/lb. The contract was above its 20D MA (@ 259.45c) and above its 50D MA (@ 259.85c). In Europe, the London Metal Exchange reported its copper inventories decreased 200 tons to 268200 tons.