Daily Markets Broadcast – 2018-10-16

Daily Markets Broadcast

2018-10-16

Wall Street weaker, pressured by tech sector

The Friday rebound on Wall Street proved fleeting as selling restarted yesterday, led by the tech sector amid concerns about earnings reports. Gold topped the dollar as the go-to safe haven, while Brexit stalemate and Italy budget concerns capped European bourses.

US30USD Daily Chart

Source: Oanda fxTrade

• The US30 index closed lower yesterday as concerns over tech sector earnings and disappointing data weighed. The index did not reach last week’s lows however, and has started positively today
• The index is still holding above the 200-day moving average at 25,136, and has yet to test the 55-week moving average at 24,812
• US Sep retail sales missed estimates yesterday. Today we see industrial production data for Sep, which is expected to slow to +0.3% m/m from +0.4%. Another disappointment would pile additional pressure on the index

DE30EUR Daily Chart

Source: Oanda fxTrade

• The Germany30 index rose for a second straight day yesterday, defying the downward pressure on Wall Street
• The index remains above the 200-week moving average at 11,473 and the positive start for US index futures suggests this will continue to provide support
• ECB’s Draghi sees underlying inflation hovering around 1%, confident it will move toward target. Italy approved deficit-boosting budget yesterday. Now awaits the EU’s response

XAUUSD Daily Chart

Source: Oanda fxTrade

• Gold touched its highest in more than 2-1/2 months yesterday as a softer US dollar helped its status as a safe haven
• The metal is testing the 100-day moving average at 1,228. A sustained breach of that would bring Fibonacci resistance at 1,239 in to play
• It’s not just a weak dollar and safe haven buying that is boosting gold. Consumer demand out of India for the festive and wedding season is also picking up

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.