General Market Comment
US indices closed mixed on Wednesday. Shares in the Automobiles & Components (-1.61%), Energy (-1%) and Transportation (-0.79%) sectors closed lower while shares in the Household & Personal Products (+2.75%), Telecommunication Services (+1.11%) and Utilities (+1.08%) sectors ended on a positive note. On the economic data front, MBA mortgage applications decreased by 2.7% in week ended January 18th from a rise of 13.5% in the previous week. In other news, the FHFA house price index improved by 0.4% MoM in November (estimated 0.3%) from an increase of 0.4% in October. The S&P 500 (2,638.70) stays above its 20d moving average (2,553.97 – positive slope) and 50d moving average (2,619.49 – negative slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Wednesday with the exception of the JPY. On the economic data front, MBA mortgage applications decreased by 2.7% in week ended January 18th from a rise of 13.5% in the previous week. In other news, the FHFA house price index improved by 0.4% MoM in November (estimated 0.3%) from an increase of 0.4% in October.
The Euro was mixed against its major pairs. Euro-zone consumer confidence index fell to -7.9 in January in first estimation (-6.5 expected) vs -8.3 a month earlier (revised from -6.2).
The Australian dollar was higher against most of its major pairs except for the GBP and the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (MAR 19) was about flat to $52.58. The contract was above its 20D MA (@ $49.62) and above its 50D MA (@ $51.57).
Gold was down $2.3 to $1282.9. The precious metal was below its 20D MA (@ $1286) and above its 50D MA (@ $1257).
Copper Future (MAR 19) on Comex was about flat to 265.6c/lb. The contract was above its 20D MA (@ 265.44c) and below its 50D MA (@ 271.38c). In Europe, the London Metal Exchange reported its copper inventories increased 550 tons to 145575 tons.