US indices closed mixed on Monday with the S&P 500 snapping a 3 day winning streak. Shares in the Consumer Durables & Apparel (+0.37%), Technology Hardware & Equipment (+0.28%) and Real Estate (+0.22%) sectors traded higher while shares in the Utilities (-0.68%), Health Care Equipment & Services (-0.57%) and Energy (-0.56%) sectors were under pressure. On the economic data front, their was no major news. On Tuesday, economists expect The National Federation of Independent Business Small Business Optimism Index to reach 102.0 for October, up from 101.8 in September.
European markets are expected to start on a positive note.
Foreign Exchange
The US dollar was bearish against most of its major pairs on Monday, with the exception of the AUD. On the economic data front, their was no major news. On Tuesday, economists expect The National Federation of Independent Business Small Business Optimism Index to reach 102.0 for October, up from 101.8 in September.
The Euro was bearish against most of its major pairs with the exception of the AUD, CAD and USD. In Europe, Moody’s downgraded the U.K.’s “Aa2” rating outlook to “Negative” from “Stable”, saying: “The increasing inertia and, at times, paralysis that has characterized the Brexit-era policymaking process has illustrated how the capability and predictability that has traditionally distinguished the U.K.’s institutional framework has diminished. (…) The decline in institutional strength appears to Moody’s to be structural in nature and likely to survive Brexit given the deep divisions within society and the country’s political landscape.” In other news, “October data from the IHS Markit UK Business Outlook survey indicate a slight drop in optimism since June, with the degree of positive sentiment remaining close to the ten-year low recorded at the beginning of 2019.” And this morning U.K. third quarter Gross Domestic Product rose 1.0% year on year (+1.1% expected), September Industrial Production declined 0.3% on month (-0.2% expected), Manufacturing Production deteriorated 0.4% (-0.3% expected) and Trade Balance deficit widened to -3.36 billion pounds (2.2B pounds deficit expected). In Germany, “Business confidence across the German private sector has slipped to the lowest since the global financial crisis, according to the latest IHS Markit Global Business Outlook survey.”
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was about flat to $56.9. The contract was above its 20D MA (@ $55.46) and above its 50D MA (@ $55.46).
Gold was down $3 to $1455.9. The precious metal was below its 20D MA (@ $1490) and below its 50D MA (@ $1498).
Copper Future (DEC 19) on Comex was down 1.9c to 266.25c/lb. The contract was above its 20D MA (@ 265.96c) and above its 50D MA (@ 262.63c). In Europe, the London Metal Exchange reported its copper inventories decreased 1750 tons to 232450 tons.