Tuesday, March 18, 2014


Market Comment

US indices rebounded on Monday helped by shares in the Software & Services, Banks and Capital Goods sectors. The S&P 500 (1858.83) broke above its 20d moving average (1855.3 - positive slope) and remains above its 50d moving average (1829.4 - flat slope). The FOMC meeting starts today and will announce its rate decision tomorrow.

European markets are expected to start on a positive note.

Foreign Exchange

US Dollar fell against most of its major counterparts on Monday. On the US economic data front, Empire Manufacturing index rose to 5.61 (6.50 expected) in March from 4.48 the previous month. Industrial production increased 0.6% MoM (+0.2% expected) in February after an upwardly revised 0.2% decline the prior month. Finally, NAHB Housing Market index rose to 47 (50 expected) in March from 46.

The Euro was firm against its major counterparts. In Europe, euro zone consumer prices increased by 0.3% in February after a 1.1% decline in January. Economists anticipated a 0.4% gain.


After the close of Wall Street, WTI Crude Future (APR 14) was down $0.8 to $98.04. The contract was above its 20D MA (@ $95.67) and above its 50D MA (@ $96.35).

Gold was down $15.9 to $1367.2. The precious metal was above its 20D MA (@ $1342) and above its 50D MA (@ $1293). The 14d RSI above 70 (73.11) indicates gold was overbought.

Copper Future (MAY 14) on Comex was about flat to 295.1c/lb. The contract was below its 20D MA (@ 330.62c) and below its 50D MA (@ 326.76c). The 14d RSI below 30 (24.36) indicates Copper Future (MAY 14) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories increased 2075 tons to 253375 tons.
ECB: Publication of the Consolidated Financial Statement of the Eurosystem (3pm CET)

Today's Economic Events

EC 10:00: JAN Euro-Zone: Trade Balance (Bln): NA
EC 10:00: JAN Euro-Zone: Trade Balance (Bln) (MoM): NA
US 12:30: FEB Consumer Price Index (MoM): 0.1%
GE 10:00: MAR Zew Survey (Econ. Sentiment): NA
GE 10:00: MAR Zew Survey (Current Situation): NA
US 12:30: FEB CPI - Ex Food & Energy (MoM): 0.1%
US 12:30: FEB Housing Starts (Thsd): 915
US 12:30: FEB Bulding Permits (Thsd): 963

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