General Market Comment
US indices closed mixed on Monday. Shares in the Automobiles & Components (-2.13%), Consumer Durables & Apparel (-1.9%) and Real Estate (-1.89%) sectors closed lower while shares in the Energy (+1.47%), Technology Hardware & Equipment (+0.81%) and Health Care Equipment & Services (+0.76%) sectors ended in the green zone. On the economic data front, the Chicago Federal National Activity index remained unchanged MoM in August at 0.18 (estimated 0.2). In other news, the Dallas Federal Manufacturing Activity index slightly diminished to 28.1 in September (forecasted 31) from 30.9 in August. The S&P 500 (2,919.37) remains above its 20d moving average (2,899.50 – positive slope) and 50d moving average (2,859.75 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Mondaywith the exception of the GBP and the EUR. On the economic data front, the Chicago Federal National Activity index remained unchanged MoM in August at 0.18 (estimated 0.2). In other news, the Dallas Federal Manufacturing Activity index slightly diminished to 28.1 in September (forecasted 31) from 30.9 in August.
The Euro was bullish against most of its major pairs with the exception of the GBP. In Europe, ECB’s president Mario Draghi said at a press conference that it expects a “vigorous pick-up in underlying inflation” sending the euro higher. Regarding the stats, German IFO business climate index fell to 103.7 in September vs 103.9 in August and 103.2 expected.
The Australian dollar was lower against most of its major pairs with the exception of the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (NOV 18) was up $1.5 to $72.26. The contract was above its 20D MA (@ $69.22) and above its 50D MA (@ $67.57).
Gold was about flat to $1198.9. The precious metal was below its 20D MA (@ $1200) and below its 50D MA (@ $1206).
Copper Future (DEC 18) on Comex was down 3.3c to 282.45c/lb. The contract was above its 20D MA (@ 269.37c) and above its 50D MA (@ 272.91c). In Europe, the London Metal Exchange reported its copper inventories decreased 2250 tons to 214350 tons.