General Market Comment 26.11.19

U.S. indices closed at record highs on Monday as traders gained renewed optimism regarding U.S. – China trade relations. Shares in the Semiconductors & Semiconductor Equipment (+2.39%), Technology Hardware & Equipment (+1.66%) and Automobiles & Components (+1.65%) sectors helped push indices higher.

On the economic data front, the Chicago Fed National Activity Index reading dropped to -0.71 in October (-0.20 expected) from -0.45 in September.

Later today, economists expect the Conference Board Consumer Confidence index to rise to 127.0 in November from 125.9 in October. Wholesale inventories are expected to grow 0.1% on month in October and new home sales are anticipated to increase 0.6% on month to an annualized rate of 706,000 units.


European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was bullish against most of its major pairs on Monday, with the exception of the CHF and GBP. On the economic data front, the Chicago Fed National Activity Index reading came in at -0.71, lower than the -0.20 consensus for October, compared to -0.45 in September. On Tuesday, economists expect Wholesale Inventories month over month change to come in at 0.1% for the October preliminary reading, up from -0.4% in the prior reading. New Home Sales are anticipated at 706K for October, up from 701K the prior month, and finally Conference Board Consumer Confidence data for November is expected at 127.0, up from 125.9 in October.

The Euro was bearish against most of its major pairs with the exception of the JPY. In Europe, German November IFO was released at 95.0 for Business Climate (as expected, vs 94.7 in October), at 97.90 for the Current Conditions (vs 97.90 expected and 97.80 the previous month) and at 92.10 for the Expectations (vs 92.50 expected and 91.50 in October). In the U.K., the Confederation of British Industry released November Retail Sales Index at -3 (vs -11 expected and -10 in October).

The Australian dollar was bearish against most of its major pairs with the exception of the JPY.

Commodities

After the close of Wall Street, WTI Crude Future (JAN 20) was about flat to $57.98. The contract was above its 20D MA (@ $56.77) and above its 50D MA (@ $55.55).

Gold was down $6.9 to $1454.7. The precious metal was below its 20D MA (@ $1477) and below its 50D MA (@ $1489).

Copper Future (MAR 20) on Comex was about flat to 266.1c/lb. The contract was below its 20D MA (@ 266.91c) and above its 50D MA (@ 263.89c). In Europe, the London Metal Exchange reported its copper inventories decreased 2825 tons to 213275 tons.