US indices closed slightly positive on Tuesday helped by shares in the Health Care Equipment & Services (+0.91%), Media (+0.56%) and Software & Services (+0.5%) sectors. On the economic data front, The National Federation of Independent Business Small Business Optimism Index rose to 102.4, higher than the expected 102.0 for October, up from 101.8 in September. On Wednesday, economists expect the Consumer Price Index month over month change to be up 0.3% for October, from no change the month before and the Mortgage Bankers Association is scheduled to post Mortgage Applications for the week ending November 8th. The government is expected to post a budget deficit of 130.0 billion dollars for October, compared with a deficit of 100.5 billion dollars in September. Finally, Fed chair Powell will testify before the joint economic committee of the U.S. Congress in a hearing called “The Economic Outlook.”
European markets are expected to open on a negative note.
Foreign Exchange
The US dollar was flat to bullish against most of its major pairs on Tuesday, with the exception of the CAD. On the economic data front, The National Federation of Independent Business Small Business Optimism Index rose to 102.4, higher than the expected 102.0 for October, up from 101.8 in September. On Wednesday, economists expect the Consumer Price Index month over month change to be up 0.3% for October, from no change the month before and the Mortgage Bankers Association is scheduled to post Mortgage Applications for the week ending November 8th. The Monthly Budget Statement is expected to increase to 129.1 billion dollars for October, from 82.8 billion dollars the month before. Finally, Fed chair Powell will testify before the joint economic committee of the U.S. Congress in a hearing called “The Economic Outlook.”
The Euro was bearish against most of its major pairs with the exception of the NZD. In Europe, the U.K. Jobless Rate for the three-month to September unexpectedly declined to 3.8% (steady at 3.9% expected). German ZEW November Survey Current Situation rose to -24.7 from -25.3 (-21.0 expected); Expectations rose to -2.1 from -22.8 (-13.0 expected) and the Eurozone Economic Sentiment jumped to -1.0 from -23.5 in October (-32.5 expected). Also, France October Industry Sentiment Indicator hedged higher at 98 from 96 in September (97 expected).
The Australian dollar was bearish against most of its major pairs with the exception of the NZD and EUR.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was about flat to $56.76. The contract was above its 20D MA (@ $55.66) and above its 50D MA (@ $55.52).
Gold was up $2.8 to $1458.8. The precious metal was below its 20D MA (@ $1489) and below its 50D MA (@ $1496).
Copper Future (DEC 19) on Comex was down 1.8c to 264.6c/lb. The contract was below its 20D MA (@ 266.13c) and above its 50D MA (@ 262.87c). In Europe, the London Metal Exchange reported its copper inventories decreased 4850 tons to 224500 tons.