Daily Markets Broadcast 2018-10-30

Daily Markets Broadcast

 

2018-10-30

Wall Street tumbles on additional tariff threat

News that Trump’s administration is considering tariffs on all remaining Chinese imports from December, should a planned Trump-Xi meeting at end-November fail, sent markets reeling, pushing indices to multi-month lows.

 

US30USD Daily Chart

Source: OANDA fxTRade

  • The US30 index was performing well yesterday until news emerged of the additional tariffs. That prompted a sharp reversal, sending the index to its lowest since July
  • Possible bullish divergence is still evident on the daily stochastics chart, which could imply the spike lower yesterday may be temporary
  • The core PCE prices index rose a more-than-expected 0.2% m/m in Sep, data released yesterday showed. The are no major releases scheduled for today.

 

DE30EUR Monthly Chart

Source: OANDA fxTrade

  • Early losses were pared back yesterday and the DE30 index closed higher on the day, touching the highest in a week at one point
  • Support at the 55-month moving average at 11,185 remains intact for now, which has supported prices on a closing basis since December 2011. Head and shoulders reversal pattern on monthly chart is still in play
  • Euro-zone Q3 GDP growth is seen slowing to 1.8% y/y from 2.1% previously. Merkel says she will not seek re-election as her party leader (current term until 2021).

 

HK33HKD Monthly Chart

Source: OANDA fxTrade

  • The HongKong33 index fell for the fifth straight day yesterday, weighed down by the biggest one-day fall in China shares since February 7 as companies’ profitability fell
  • The index is hovering below the 55-month moving average at 24,919, and a close below it would be the first time since December 2016
  • Sentiment is likely to follow China shares again after US announced it would consider tariffs on all remaining Chinese imports if the Trump-Xi meeting (probably Nov. 30) yields no results.

 

 

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.