Daily Markets Broadcast 2018-12-11

Daily Markets Broadcast

2018-12-11

Wall Street rebounds from seven-month lows

US indices rebounded strongly from seven-month lows yesterday, led by the tech sector. UK PM May, faced with an embarrassing defeat on her Brexit deal, defers the vote and heads to Brussels to “seek assurances” from European leaders.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index slumped to the lowest since May 4 before a solid rebound saw the index record its first up-day in three days
• A possible Doji candlestick reversal pattern may be unfolding. A higher close today would confirm
• US producer prices are expected to rise 2.5% y/y in November, slower than October’s 2.9% rate. A lower number would add fuel to possibility that the Fed could pause its rate hiking cycle earlier.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index mirrored the moves on Wall Street yesterday with a strong rebound to close in the black.
• Another possible Doji reversal setup on the charts, with an up-day required to confirm a near-term bottom is in place
• ZEW surveys are expected to show sentiment sliding in December. The economic sentiment index is seen dropping to -25.0 from -24.1, while the current situation index may drop to 55.6 from 58.2, latest polls of economists show.

UK100GBP Monthly Chart

Source: OANDA fxTrade

• UK shares managed the first close in the black in five days yesterday
• The UK100 index looks set to close below the 55-month moving average for the first time since May 2016
• UK PM May has confirmed she is to delay today’s parliamentary Brexit vote and head to Brussels to try to get a better deal. EU says will call a European Council meeting on Thursday to discuss Brexit Article 50, but adds the current deal will not be renegotiated.

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