General Market Comment
US indices closed mixed on Tuesday. Shares in the Banks (-1.25%), Insurance (-1.22%) and Capital Goods (-0.69%) sectors ended lower while shares in the Household & Personal Products (+1.25%), Food & Staples Retailing (+0.75%) and Food, Beverage & Tobacco (+0.71%) sectors gained traction. On the economic data front, the NFIB small business optimism index declined to 104.8 in November (estimated 107) from 107.4 in October. In other news, the PPI final demand improved by 0.1% MoM (expected to remain flat) compared to an increase of 0.6% in the previous month. The S&P 500 (2,636.78) remains below its 20d moving average (2,696.14 – negative slope) and 50d moving average (2,746.95 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against most of its major pair on Tuesay with the exception of the AUD. On the economic data front, the NFIB small business optimism index declined to 104.8 in November (estimated 107) from 107.4 in October. In other news, the PPI final demand improved by 0.1% MoM (expected to remain flat) compared to an increase of 0.6% in the previous month.
The Euro was bearish against all of its major pairs. The German investor confidence ZEW index for expectations was -17.5 for December (-25 expected) vs -24.1 a month earlier. The UK ILO unemployment rate for the August-October period was flat at 4.1%, as anticipated.
The Australian dollar was higher against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 19) was up $0.7 to $51.73. The contract was below its 20D MA (@ $53.15) and below its 50D MA (@ $62.2).
Gold was about flat to $1243. The precious metal was above its 20D MA (@ $1228) and above its 50D MA (@ $1222).
Copper Future (MAR 19) on Comex was up 4.7c to 276.7c/lb. The contract was below its 20D MA (@ 277.02c) and below its 50D MA (@ 277.46c). In Europe, the London Metal Exchange reported its copper inventories decreased 1200 tons to 121300 tons.