US indices closed mixed on Tuesday. Shares in the Food & Staples Retailing (+1.47%), Consumer Services (+0.85%) and Banks (+0.69%) sectors traded higher while shares in the Real Estate (-1.76%), Commercial & Professional Services (-1.17%) and Utilities (-1.03%) sectors were under pressure. The S&P 500 (3,074.62) stays above its 20d moving average (3,009.20 – positive slope) and 50d moving average (2,979.15 – positive slope).
On the economic data front, the Trade Balance fell to -52.5 billion dollars, just shy of the -52.4 billion dollars estimate for September, down from a revised -55.0 billion dollars in August. The Institute for Supply Management Non-Manufacturing Index rose to 54.7, higher than the 53.5 consensus for October, up from 52.6 in September. On Wednesday, economists expect MBA Mortgage Applications to be released.
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Tuesday, with the exception of the AUD. On the economic data front, the Trade Balance fell to -52.5 billion dollars, just shy of the -52.4 billion dollars estimate for September, down from a revised -55.0 billion dollars in August. The Institute for Supply Management Non-Manufacturing Index rose to 54.7, higher than the 53.5 consensus for October, up from 52.6 in September. On Wednesday, economists expect MBA Mortgage Applications to be released.
The Euro was bearish against all of its major pairs. In Europe, the Eurozone Producer Price Index fell by 1.2% in September year over year, as expected, after a 0.8% decline a month earlier. Markit UK Services Purchasing Managers Index increased to 50 in October from 49.5 in September. It was expected to be 49.7.
The Australian dollar was bullish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was up $0.7 to $57.21. The contract was above its 20D MA (@ $54.81) and above its 50D MA (@ $55.31).
Gold was down $25.2 to $1484.5. The precious metal was below its 20D MA (@ $1495) and below its 50D MA (@ $1503).
Copper Future (DEC 19) on Comex was up 3.1c to 270.2c/lb. The contract was above its 20D MA (@ 264.5c) and above its 50D MA (@ 261.65c). In Europe, the London Metal Exchange reported its copper inventories decreased 3475 tons to 248000 tons.