General Market Comment
US indices were closed on Monday to celebrate Martin Luther King Day. On Friday, the US indices closed higher to finish the week, as China reportedly offered a path to eliminate its trade imbalance, according to Bloomberg. Shares in the Consumer Durables & Apparel (+2.38%), Semiconductors & Semiconductor Equipment (+2.26%) and Transportation (+2.18%) sectors gained momentum. On the economic data front, industrial production improved by 0.3% MoM in December (estimated 0.2%) from a rise of 0.4% in November. Capacity utilization slightly increased to 78.7% in December (forecasted 78.5%) from 78.6% in the previous month. Finally, the University of Michigan sentiment index fell to 90.7 in a preliminary estimate in January (expected 96.8) compared to 98.3 a month earlier. The S&P 500 (2,670.71) stays above its 20d moving average (2,525.45 – flat slope) and 50d moving average (2,625.45 – negative slope).
European markets are expected to start on a negative note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Monday with the exception of the GBP, the JPY and the EUR. On the economic data front, there was no major news to report.
The Euro was bullish against most of its major pairs with the exception of the GBP. The German PPI fell by 0.4% in December (-0.1% expected) after being up 0.1% in November. According to Rightmove, UK house prices gained 0.4% in January after falling 1.5% a month earlier.
The Australian dollar was lower against most of its major pairs except for the NZD, the CAD and the CHF.
Commodities
After the close of Wall Street, WTI Crude Future (FEB 19) was about flat to $53.9. The contract was above its 20D MA (@ $49.04) and above its 50D MA (@ $51.52).
Gold was about flat to $1280.3. The precious metal was below its 20D MA (@ $1284) and above its 50D MA (@ $1254).
Copper Future (MAR 19) on Comex was down 4.3c to 267.55c/lb. The contract was above its 20D MA (@ 265.61c) and below its 50D MA (@ 271.6c). In Europe, the London Metal Exchange reported its copper inventories increased 9925 tons to 145025 tons.