US indices declined on Tuesday along with bond yields after President Trump mentioned he could wait another year regarding a trade deal with China. Shares in the Transportation (-2.09%), Semiconductors & Semiconductor Equipment (-1.76%)and Banks (-1.59%) sectors were under the most pressure. On the economic data front, there was no major news released. On Wednesday, economists expect the Mortgage Bankers Association’s Mortgage Applications data for the week ending November 29th. Automatic Data Processing’s Employment Change is anticipated at 140K for November, up 15K from 125K the month before. Markit US Services Purchasing Mangers’ Index for the November final reading is expected to be in-line with the preliminary reading at 51.6 and Markit US Composite Purchasing Managers’ Index data for the November final reading is also expected. Finally, the Institute for Supply Management’s Non-Manufacturing Purchasing Managers’ Index is expected to release at 54.5 for November, down from 54.7 in October.
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against all of its major pairs on Tuesday. On the economic data front, there was no major news released. On Wednesday, economists expect the Mortgage Bankers Association’s Mortgage Applications data for the week ending November 29th. Automatic Data Processing’s Employment Change is anticipated at 140K for November, up 15K from 125K the month before. Markit US Services Purchasing Mangers’ Index for the November final reading is expected to be in-line with the preliminary reading at 51.6 and Markit US Composite Purchasing Managers’ Index data for the November final reading is also expected. Finally, the Institute for Supply Management’s Non-Manufacturing Purchasing Managers’ Index is expected to release at 54.5 for November, down from 54.7 in October.
The Euro was bearish against all of its major pairs. In Europe, the Eurozone’s Producer Prices for October was reported at -1.9% (-1.8% on year expected). In the U.K., the Markit/CIPS U.K. Construction Purchasing Managers’ Index for November was released at 45.3, it was expected at 44.5 (44.2 in October).
The Australian dollar was bullish against most of its major pairs with the exception of the CHF and GBP.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 20) was about flat to $56.31. The contract was below its 20D MA (@ $57.08) and above its 50D MA (@ $55.47).
Gold was up $15 to $1477.4. The precious metal was above its 20D MA (@ $1465) and below its 50D MA (@ $1484).
Copper Future (MAR 20) on Comex was down 2.5c to 262.55c/lb. The contract was below its 20D MA (@ 266.65c) and below its 50D MA (@ 264.32c). In Europe, the London Metal Exchange reported its copper inventories decreased 2275 tons to 203975 tons