General Market Comment 29.10.19

The S&P 500 index posted a record high on Monday lifted by shares in the Telecommunication Services (+1.98%), Software & Services (+1.42%) and Semiconductors & Semiconductor Equipment (+1.31%) sectors. Earnings season has been relatively positive on stocks as we enter the busiest earnings week. The S&P 500 (3,039.42) remains above its 20d moving average (2,968.27 – positive slope) and 50d moving average (2,960.27 – positive slope).

On the economic data front, Wholesale Inventories fell 0.3% month over month, which was lower than the 0.2 rise expected for the September preliminary reading, down from 0.2% in the prior reading marking a low not reached since October of 2017. On Tuesday, economists expect Consumer Confidence to report at 128.0 for October, up from 125.1 in September.

European markets are expected to open on a flat note.

Foreign Exchange

The US dollar was bearish against most of its major pairs on Monday with the exception of the JPY. On the economic data front, Wholesale Inventories fell 0.3% month over month, which was lower than the 0.2 rise expected for the September preliminary reading, down from 0.2% in the prior reading marking a low not reached since October of 2017. On Tuesday, economists expect Consumer Confidence to report at 128.0 for October, up from 125.1 in September.

The Euro was bullish against most of its major pairs with the exception of the AUD and GBP. In Europe, M3 money supply growth was down to 5.5% in September from 5.8% in August. Consensus expected +5.7%. Germany import prices increased by 0.6% in September after a 0.6% slid a month earlier. Economists anticipated a 0.1% rise.

The Australian dollar was bullish against all of its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (DEC 19) was down $0.8 to $55.81. The contract was above its 20D MA (@ $53.9) and above its 50D MA (@ $55.17).

Gold was down $11.1 to $1493.5. The precious metal was below its 20D MA (@ $1494) and below its 50D MA (@ $1505).

Copper Future (DEC 19) on Comex was about flat to 268.35c/lb. The contract was above its 20D MA (@ 261.26c) and above its 50D MA (@ 260.45c). In Europe, the London Metal Exchange reported its copper inventories decreased 5375 tons to 255650 tons.