Daily Markets Broadcast 2018-12-12

Daily Markets Broadcast

2018-12-12

Equities mixed after a whippy session yesterday

US indices closed mixed after a volatile day yesterday with initial euphoria that China might soon announce various trade concessions being countered by US President Trump’s threat to shut down the government. Rumours the Conservative MPs had collected enough support to mount a leadership challenge on PM May also weighed on sentiment.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index closed lower yesterday despite a strong rally earlier in the session. Trade hopes fueled the rally, only to be halted by Trump’s threat to shut down government if border wall funding is not made available. Markets have started positively this morning after Trump said the release of Huawei’s CFO could be part of a broader trade deal with China
  • The Doji formation mentioned yesterday failed after the index closed lower. The 100-week moving average is at 23,477
  • US consumer prices are expected to rise 2.2% y/y in November, slower than October’s 2.5% rate, lending support to the notion that the Fed may pause its hiking cycle next year.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rose for a second straight day yesterday and looks poised to add to those gains today, given the bullish start by US futures
  • Doji reversal formation on the charts confirmed with yesterday’s higher close. The 55-day moving average is at 11,482
  • Euro-zone industrial production is expected to slow to +0.8% y/y in October from +0.9% the previous month.

UK100GBP Daily Chart

Source: OANDA fxTrade

  • UK shares advanced for a second day yesterday, despite all the political turmoil surrounding Brexit. The pound was the asset class to bear the brunt of negativity
  • Slow stochastics momentum indicator is above the oversold threshold and rising, which is a bullish signal. The 55-day moving average at 7,090 acts as the first resistance point
  • Sky News reported that Conservative MPs have gathered the 48 letters required to mount a vote of no confidence in PM May. Should it happen, it could stall the index’s current advance.

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.