US indices closed lower in late trading Tuesday pressured by shares in the Consumer Services (-2.74%), Software & Services (-2.19%) and Insurance (-1.75%) sectors. U.K. lawmakers rejected a limited time frame to review a deal on Brexit. This makes an Oct. 31 deadline extension more likely. The S&P 500 (2,995.99) remains above its 20d moving average (2,959.48 – positive slope) and 50d moving average (2,948.80 – positive slope).
On the economic data front, Existing Home Sales fell to 5.38 million missing the 5.45 million estimate for September, down from a revised 5.50 million the prior month. On Wednesday, economists expect MBA Mortgage Applications for the week ended October 18th and The Federal Housing Finance Agency House Price Index month over month change is expected to rise 0.3% for August, from a prior rise of 0.4%.
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Tuesday, with the exception of the NZD and JPY. On the economic data front, Existing Home Sales fell to 5.38 million missing the 5.45 million estimate for September, down from a revised 5.50 million the prior month. On Wednesday, economists expect MBA Mortgage Applications for the week ended October 18th and The Federal Housing Finance Agency House Price Index month over month change is expected to rise 0.3% for August, from a prior rise of 0.4%.
The Euro was bearish against most of its major pairs with the exception of the CHF. In Europe, UK public sector net borrowing ex banking groups widened to £9.4B in September vs £8.8B a year earlier.
The Australian dollar was mixed against most of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was up $0.9 to $54.37. The contract was above its 20D MA (@ $53.78) and below its 50D MA (@ $55.05).
Gold was up $3.3 to $1487.9. The precious metal was below its 20D MA (@ $1494) and below its 50D MA (@ $1506).
Copper Future (DEC 19) on Comex was down 1.1c to 263.55c/lb. The contract was above its 20D MA (@ 259.6c) and above its 50D MA (@ 259.94c). In Europe, the London Metal Exchange reported its copper inventories increased 2150 tons to 270350 tons.