U.S. indices closed lower on Tuesday erasing strong gains in the morning as shares in the Food, Beverage & Tobacco (-1.61%), Health Care Equipment & Services (-1.06%) and Bank (-0.98%) sectors became under pressure. On the economic data front, the Conference Board Consumer Confidence Index slipped to 135.1 in August (vs. 129.0 expected) from 135.8 in July. Also, the Richmond Fed Manufacturing Index rose to 1 in August (vs. -4 expected) from -12 in July. The S&P 500 (2,869.16) stays below its 20d moving average (2,899.28 – negative slope) and its 50d moving average (2,946.24 – flat slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was higher against all of its major pairs on Tuesday with the exception of the GBP and JPY. On the economic data front, Consumer confidence declined less than expected beating growth estimates in the month of August. The index reached 135.1 points compared to a revised 135.8 in July.
The Euro was mixed against its major pairs. In Europe, the German GDP was confirmed down by 0.1% in Q2 after a 0.4% rise in 1Q. French manufacturing confidence rose to 102 in August from 101 in July. It was expected to be flat.
The Australian dollar was under pressure against all of its major pairs except against the NZD and CHF.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 19) was up $1.3 to $54.97. The contract was above its 20D MA (@ $54.84) and below its 50D MA (@ $56.43).
Gold was up $15.8 to $1543. The precious metal was above its 20D MA (@ $1495) and above its 50D MA (@ $1445).
Copper Future (DEC 19) on Comex was about flat to 255.55c/lb. The contract was below its 20D MA (@ 259.36c) and below its 50D MA (@ 266.01c). In Europe, the London Metal Exchange reported its copper inventories increased 2050 tons to 333975 tons.