General Market Comment
US indices closed higher on Tuesday as the Nasdaq was the biggest winner with a 2.89% jump. Shares in the Software & Services (+3.38%), Health Care Equipment & Services (+3.28%) and Semiconductors & Semiconductor Equipment (+3.21%) sectors closed in the green zone. On the economic data front, industrial production increased by 0.3% MoM in September (estimated 0.2%) from an increase of 0.4% in August. In other news, Capacity Utilization remained unchanged YoY at 78.1% in September, slightly lower than expectations of 78.2%. The S&P 500 (2,809.92) remains at levels below both its 20d moving average (2,875.23 – negative slope) and 50d moving average (2,873.89 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Tuesday with the exception of the CHF and the JPY. On the economic data front, industrial production increased by 0.3% MoM in September (estimated 0.2%) from an increase of 0.4% in August. In other news, Capacity Utilization remained unchanged YoY at 78.1% in September, slightly lower than expectations of 78.2%.
The Euro was bearish against most of its major pairs with the exception of the CHF and the JPY. Germany ZEW investor expectations index plunged to -24.7 in October from -10.6 a month earlier. It was expected to be -12. Separately, Germany imports prices were flat in August, as expected, after a 0.2% decline in July. UK ILO unemployment rate remained flat at 4% for the June-August period, as anticipated.
The Australian dollar was higher against most of its major pairs with the exception of the NZD, the CAD and the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was about flat to $72.21. The contract was below its 20D MA (@ $72.87) and above its 50D MA (@ $69.68).
Gold was down $2.8 to $1224.4. The precious metal was above its 20D MA (@ $1202) and above its 50D MA (@ $1200).
Copper Future (DEC 18) on Comex was about flat to 278.25c/lb. The contract was below its 20D MA (@ 279.49c) and above its 50D MA (@ 273.06c). In Europe, the London Metal Exchange reported its copper inventories increased 2475 tons to 164175 tons.