US indices closed down on Tuesday, pressured by the Real Estate (-0.68%), Materials (-0.59%) and Household & Personal Products (-0.58%) sectors. On the economic data front, the National Federation of Independent Business’s Small Business Optimism Index came out at 104.7 for November, above the 103.0 consensus, up from 102.4 in October. On Wednesday, economists expect to see the Mortgage Bankers Association’s Mortgage Applications data for the week ending December 6th. The Consumer Price Index is anticipated to rise 0.2% for November, down from an increase of 0.4% a month earlier. The Monthly Budget Deficit is expected to reach 206.2 billion dollars for November, compared to 134.5 billion in October. Finally, the Fed will be meeting for the last time in the year.
European markets are expected to open on a flat note.
Foreign Exchange
The US dollar was flat to bearish against most of its major pairs on Tuesday, with the exception of the AUD and JPY. On the economic data front, the National Federation of Independent Business’s Small Business Optimism Index came out at 104.7 for November, above the 103.0 consensus, up from 102.4 in October. On Wednesday, economists expect to see the Mortgage Bankers Association’s Mortgage Applications data for the week ending December 6th. The Consumer Price Index is anticipated to rise 0.2% for November, down from an increase of 0.4% a month earlier. The Monthly Budget Deficit is expected to reach 206.2 billion dollars for November, compared to 134.5 billion in October. Finally, the Fed will be meeting for the last time in the year.
The Euro was bullish against most of its major pairs with the exception of the CHF and GBP. In Europe, ZEW survey results for December were released for Germany at -19.90 for current situation (vs -22.0 expected) and at 10.70 for expectations (vs 0.3 expected). The ZEW Eurozone Economic Sentiment was published at 11.20 vs -17.70 expected. France’s INSEE has posted October Industrial Production at +0.4% (vs +0.2% on month expected) and Manufacturing Production at +0.5% (vs +0.4% on month expected). The U.K. Office for National Statistics has reported October Gross Domestic Product at 0.0% (vs +0.1% on month expected), Industrial Production at +0.1% (vs +0.2% on month expected), Manufacturing Production at +0.2% (vs flat on month expected) and Trade Balance at -5.19 billion pounds (vs 2.8 billion pounds deficit expected).
The Australian dollar was bearish against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 20) was about flat to $59.31. The contract was above its 20D MA (@ $57.54) and above its 50D MA (@ $55.81).
Gold was up $2.9 to $1464.6. The precious metal was below its 20D MA (@ $1466) and below its 50D MA (@ $1481).
Copper Future (MAR 20) on Comex was about flat to 276.35c/lb. The contract was above its 20D MA (@ 267.06c) and above its 50D MA (@ 265.4c). In Europe, the London Metal Exchange reported its copper inventories decreased 5625 tons to 179575 tons.