Daily Markets Broadcast 2018-11-28

Daily Markets Broadcast

2018-11-28

Wall Street pushes higher on trade talk

US equities extended gains yesterday on hopes for progress in US-China trade talks at the G-20 meeting this weekend. However, reports circulated that Trump could impose tariffs on German carmakers as early as next week. That pressured European exchanges.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index rallied for a second straight day, reaching a one-week high as Trump’s chief economic adviser Larry Kudlow announced that the two leaders will have dinner together this coming Saturday
  • The index is rising toward the 200-day moving average at 25,084. The index has traded below this average since November 19
  • October’s US trade balance is due today and is expected to show a widening of the deficit to $76.7 billion from $76.04 billion in September. That would be unwelcome news for Mr Trump, and could stem the index’s recent rise.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index failed to maintain upward momentum yesterday after German press reported that US President Trump may impose a 25% tax on European carmakers next week after the G-20 meeting
  • The 55-day moving average is at 11,708 and has capped prices on a closing basis since August 29
  • Euro-zone October M3 money supply data is due today. The EU budget standoff with Italy appears less confrontational, at least for the time being.

HK33HKD Daily Chart

Source: OANDA fxTrade

  • The HongKong33 index consolidated Monday’s move, and close, above the 55-day moving average yesterday
  • On Monday, the index closed above the 55-day moving average at 26,187 for the first time since September 27
  • China’s ambassador to the US said he doubts Beijing would pull back from the US Treasury debt market if the trade dispute worsens.

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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