Daily Markets Broadcast 2018-11-09

Daily Markets Broadcast

2018-11-09

Wall Street dips as Fed holds rates

Most US indices fell yesterday after the Fed kept rates unchanged, but maintained its hawkish view on the economy and rate trajectory. Oil fell to new seven-month lows.

SPX500USD Daily Chart

Source: OANDA fxTrade

  • The SPX500 index fell for the first time this week yesterday, feeling pressure from the Fed’s hawkish rate outlook into December and 2019
  • The index failed to test the 100-day moving average 2,822, which has capped prices since the large drop on October 10
  • October’s producer price index is due today. Prices are seen rising at the same rate as September, +0.2% m/m and +2.6% y/y. Higher numbers could imply rising pipeline price pressure, which could hurt Wall Street.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index slipped for the first time in three days yesterday after latest Brexit comments from the UK poured cold water on the idea that a deal would be concluded this week
  • The index held below the 50% retracement level of the September 27 to October 26 drop at 11,748
  • EU Commission said Italy’s 2019 debt-to-GDP ratio could be 2.9% compared to govt ceiling of 2.4%. The EU did not see Italian debt falling in 2019.

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • WTI fell for the ninth consecutive day yesterday. The drop from the October 3 high surpassed 20%, suggesting the commodity has entered a bear market
  • WTI could find support at the $59.454 level, which is 50% retracement of the advance from June 2017 to last month
  • Wednesday’s EIA crude inventory data showed an increase in stockpiles for the seventh straight week. 5.78 million barrels were added.

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.
Andrew Robinson

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