General Market Comment
US indices closed higher on Wednesday after President Trump unveiled concessions from the European Union to escape a potential trade war. Shares in the Commercial & Professional Services (+3.09%), Transportation (+2.88%) and Software & Services (+1.72%) sectors jumped higher. On the economic data front, MBA mortgage application decreased by 0.2% in the week ending July 20 compared to -2.5% previously. In addition, new home sales decreased to 631K in June (estimated 668K) from a revised 666K in May. The S&P 500 (2,846.07) remains above both its 20d moving average (2,776.28 – positive slope) and 50d moving average (2,757.18 – positive slope).
European markets are expected to start on a flat note.
Commodities
WTI Crude Future (SEP 18) is about flat to $68.64 this morning. The contract is below its 20D MA (@ $69.86) and above its 50D MA (@ $68.32). Watch today’s Crude Oil Inventories report from the US Department of Energy for the week ended July 20 (seen at -3380k barrels) vs 5836k barrels the previous week.
Gold is up $6.3 to $1230.8. The precious metal is below its 20D MA (@ $1242) and below its 50D MA (@ $1270).
Copper Future (SEP 18) on Comex is about flat to 280.85c/lb. The contract is below its 20D MA (@ 282.65c) and below its 50D MA (@ 301.45c). In Europe, the London Metal Exchange reported today its copper inventories decreased 2025 tons to 252400 tons.