General Market Comment 03.12.19

US indices closed lower on Monday amid disappointing manufacturing data and declines by shares in the Real Estate (-1.75%), Capital Goods (-1.73%) and Semiconductors & Semiconductor Equipment (-1.54%) sectors. On the economic data front, the Markit US Manufacturing Purchasing Managers’ Index rose to 52.6, beating the 52.2 estimate for the November final reading, up from 52.2 in the preliminary reading. The Institute for Supply Management’s Manufacturing Purchasing Managers’ Index declined to 48.1, below the 49.2 consensus for November, down from 48.3 the month before. Construction Spending month over month change fell -0.8%, missing the 0.4% rise expected for October, down from a revised decline of -0.3% in September. On Tuesday, economists expect Auto Sales to rise to 16.90 million for November, up from 16.55 million last month.

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 CAD. On the economic data front, the Markit US Manufacturing Purchasing Managers’ Index rose to 52.6, beating the 52.2 estimate for the November final reading, up from 52.2 in the preliminary reading. The Institute for Supply Management’s Manufacturing Purchasing Managers’ Index declined to 48.1, below the 49.2 consensus for November, down from 48.3 the month before. Construction Spending month over month change fell -0.8%, missing the 0.4% rise expected for October, down from a revised decline of -0.3% in September. On Tuesday, economists expect Auto Sales to rise to 16.90 million for November, up from 16.55 million last month.

The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CHF. In Europe, the Markit Eurozone Manufacturing Purchasing Managers’ Index final reading for November was released at 46.9 (expected at 46.6). Similar Purchasing Managers’ Index’s for Germany and France were released at 44.1 and at 51.7 respectively (anticipated at 43.8 and 51.6). In the U.K., the Markit Eurozone Manufacturing Purchasing Managers’ Index final reading for November was released at 48.9 (expected at 48.3).

The Australian dollar was bullish against most of its major pairs with the exception of the NZD.

Commodities

After the close of Wall Street, WTI Crude Future (JAN 20) was up $0.8 to $55.92. The contract was below its 20D MA (@ $57.09) and above its 50D MA (@ $55.51).

Gold was about flat to $1463.1. The precious metal was below its 20D MA (@ $1466) and below its 50D MA (@ $1485).

Copper Future (MAR 20) on Comex was about flat to 265.15c/lb. The contract was below its 20D MA (@ 266.93c) and above its 50D MA (@ 264.31c). In Europe, the London Metal Exchange reported its copper inventories decreased 100 tons to 208425 tons.