U.S. indices closed slightly higher on Monday to end a volatile third quarter lifted by shares in the Technology Hardware & Equipment (+1.77%), Consumer Durables & Apparel (+1.32%), Health Care Equipment & Services (+1.3%) sectors while shares in the Energy (-0.75%) sector were under pressure.
On the economic data front, the Market News International Chicago PMI declined to 47.1 for September (vs. 50.0 estimated) from 50.4 in August. On Tuesday, economists expect the ISM Manufacturing PMI to drop to 50.1 in September and Construction Spending to grow 0.4% MoM in August.
The S&P 500 (2976.74) trades below its 20d moving average (2,982.16 – positive slope) but above its 50d moving average (2,948.83 – negative slope).
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Monday with the exception of the CAD. On the economic data front, the US Market News International Chicago PMI Report declined to 47.1 falling short of the 50 estimate for September compared to 50.4 the prior month. On Tuesday, economists expect the Markit US Manufacturing PMI September final reading, ISM Manufacturing PMI for September, US Construction Spending for August and US Auto Sales for September.
The Euro was bearish against most of its major pairs with the exception of the NZD and CHF. In Europe, the euro-zone unemployment rate fell to 7.4% for August from 7.5% in July, the lowest since May 2008. It was expected to be flat. The Germany CPI index was flat as expected for September, after a 0.2% decline a month earlier. The YoY inflation rate was 1.2% vs 1.3% expected and 1.4% in August. Separately, the unemployment rate was flat at 5% in September. Finally, retail sales increased by 0.5% as expected in August, after a 0.8% decline in July (revised from -2.2%). UK GDP was confirmed down by 0.2% in 2Q on a sequential basis after a 0.5% rise in 1Q. YoY GDP rose by 1.3% in 2Q in the final estimate vs +1.2% in first one and +1.8% in 1Q.
The Australian dollar was bearish against most of its major pairs with the exception of the NZD, CHF and EUR.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 19) was down $1.6 to $54.35. The contract was below its 20D MA (@ $56.91) and below its 50D MA (@ $55.9).
Gold was down $23.9 to $1473.2. The precious metal was below its 20D MA (@ $1507) and below its 50D MA (@ $1494).
Copper Future (DEC 19) on Comex was down 2.3c to 257.5c/lb. The contract was below its 20D MA (@ 261.42c) and below its 50D MA (@ 261.66c). In Europe, the London Metal Exchange reported its copper inventories decreased 1800 tons to 264425 tons.