US indices closed up on Tuesday, lifted by the Retailing (+0.85%), Banks (+0.69%) and Automobiles & Components (+0.55%) sectors. On the economic data front, Housing Starts increased to 1,365K for November, above the 1,345K consensus, up from a revised 1,323K the month before. Building Permits unexpectedly climbed to 1,482K for November, exceeding the 1,410K estimate, up from 1,461K in October, marking a high not seen since 2007. Industrial Production monthly change rose 1.1% for November, beating the 0.8% estimate, compared to a revised fall of 0.9% the prior month. Capacity Utilization increased to 77.3% for November, just shy of the 77.4% consensus, up from a revised 76.6% in October.
On Wednesday, economists expect the Mortgage Bankers Association’s Mortgage Applications data for the week ending December 13th.
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was flat to bullish against most of its major pairs on Tuesday, with the exception of the CHF. On the economic data front, Housing Starts increased to 1,365K for November, above the 1,345K consensus, up from a revised 1,323K the month before. Building Permits unexpectedly climbed to 1,482K for November, exceeding the 1,410K estimate, up from 1,461K in October, marking a high not seen since 2007. Industrial Production monthly change rose 1.1% for November, beating the 0.8% estimate, compared to a revised fall of 0.9% the prior month. Capacity Utilization increased to 77.3% for November, just shy of the 77.4% consensus, up from a revised 76.6% in October. On Wednesday, economists expect the Mortgage Bankers Association’s Mortgage Applications data for the week ending December 13th.
The Euro was flat to bullish against most of its major pairs with the exception of the CHF. In Europe, the European Commission posted the October Trade Balance at 28 billion euros (vs 20 billion euros surplus expected). The U.K. Office for National Statistics reported the Jobless Rate for the three months to October flat at 3.8% (vs 3.9% expected).
The Australian dollar was bearish against most of its major pairs with the exception of the GBP.
Commodities
After the close of Wall Street, WTI Crude Future (JAN 20) was about flat to $60.54. The contract was above its 20D MA (@ $58.18) and above its 50D MA (@ $56.52).
Gold was about flat to $1476.1. The precious metal was above its 20D MA (@ $1467) and below its 50D MA (@ $1478).
Copper Future (MAR 20) on Comex was about flat to 280.95c/lb. The contract was above its 20D MA (@ 270.87c) and above its 50D MA (@ 267.65c). In Europe, the London Metal Exchange reported its copper inventories decreased 5250 tons to 156975 tons.