General Market Comment 17.07.19

U.S. indices closed lower on Tuesday after President Donald Trump cast doubt on the trade progress between China and the U.S. The worst performing stocks were in the Semiconductors & Semiconductor Equipment (-1.17%), Energy (-1.13%) and Software & Services (-0.96%) sectors. On the economic data front, retail sales increased 0.4% MoM in June (vs +0.2% estimated, +0.4% in May). Industrial production was flat MoM in June (vs +0.1% estimated, +0.4% in May) while capacity utilization fell to 77.9% in June (vs 78.1% estimated) from 78.1% May. The NAHB Housing Market Index tipped up to 65 in July (estimated 64) from 64 June. The S&P 500 (3,004.04) stays above its 20d moving average (2,964.81 – positive slope) and its 50d moving average (2,894.48 – positive slope).


European markets are expected to start on a flat note.

Foreign Exchange

The US dollar was bullish against all its major pairs on Tuesday. On the economic data front, Retail Sales Advance increased by 0.4% MoM in June (estimated 0.2%) compared with 0.4% in the previous month. Industrial production was flat in June (estimated 0.1%) vs. 0.4% in the prior month. Industrial Capacity Utilization decreased to 77.9% in June (estimated 78.1%) vs. 78.1% in the prior month. The NAHB Housing Market Index tipped up to 65 in July (estimated 64) vs. 64 in the prior month.

The Euro was bearish against all of its major pairs with the exception of the GBP. In Europe, in Germany, ZEW economic confidence declined to -24.5 in July from -21.1 in June. This was the lowest score since November 2018. The expected reading was -22. In Euro zone, the trade surplus grew in May to 20.2b vs 17.8b expected and 15.7b in April. 

The Australian dollar was mixed against its major pairs.

Commodities

After the close of Wall Street, WTI Crude Future (AUG 19) was down $2.1 to $57.53. The contract was below its 20D MA (@ $57.96) and below its 50D MA (@ $57.92).

Gold was about flat to $1406.3. The precious metal was below its 20D MA (@ $1408) and above its 50D MA (@ $1348).

Copper Future (SEP 19) on Comex was down 1.6c to 269.55c/lb. The contract was above its 20D MA (@ 269.23c) and below its 50D MA (@ 269.64c). In Europe, the London Metal Exchange reported its copper inventories increased 7100 tons to 292925 tons.