General Market Comment
US indices closed lower on Tuesday as weak data from China and the International Monetary Fund are growing fears of a global economic slowdown. Shares in the Semiconductors & Semiconductor Equipment (-2.76%), Retailing (-2.54%) and Capital Goods (-2.4%) sectors took a hit. On the economic data front, existing home sales fell to 4.99M units in December (estimated 5.24M) from 5.32M units in November. The S&P 500 (2,632.90) stays above its 20d moving average (2,542.86 – positive slope) and 50d moving average (2,623.00 – negative slope). European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Tuesday with the exception of the GBP and the JPY. On the economic data front, existing home sales fell to 4.99M units in December (estimated 5.24M) from 5.32M units in November. The Euro was bullish against most of its major pairs with the exception of the GBP and the JPY. Germany ZEW investor confidence index for expectations bounced to -15 in January (-18.5 expected) from -17.5 a month earlier. The sub-index for current situation dropped to 27.6 (43 anticipated) from 43 in December. UK unemployment rate fell to 4% (4.1% expected) for the September-November period from 4.1% for the previous period. The Australian dollar was lower against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was down $1.1 to $52.99. The contract was above its 20D MA (@ $49.28) and above its 50D MA (@ $51.75). Gold was up $9 to $1284.9. The precious metal was below its 20D MA (@ $1285) and above its 50D MA (@ $1255). Copper Future (MAR 19) on Comex was down 5.5c to 266.4c/lb. The contract was above its 20D MA (@ 265.55c) and below its 50D MA (@ 271.58c). In Europe, the London Metal Exchange reported its copper inventories decreased 0 tons to 145025 tons.