Daily Markets Broadcast 2019-01-09

Daily Markets Broadcast

2019-01-09

Trade talk optimism lifts Wall Street

News that US-China trade negotiations in Beijing were being extended another day raised hopes that a positive announcement may be forthcoming. US President Trump tweeted that the talks were going “very well”, which helped lift US indices for a third day. UK shares benefited from rumours of a Brexit delay.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index has opened higher again this morning as trade talk optimism raises risk appetite
• The index is testing the 50% retracement level of the December drop, which is at 23,760
• There are three Fedspeakers today, Bostic, Evans and Rosengren with markets hoping for more of the dovish-leaning comments the Fed chairman made last week.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index’s looks poised for the second daily advance in a row, buoyed by trade negotiation optimism
• The index is eyeing the 55-day moving average at 11,132, which has capped prices on a closing basis since August 29
• Germany’s trade surplus is seen widening to EUR18.0b in November from EUR17.3b the previous month, seemingly unaffected by Brexit concerns and the tariff war.

UK100GBP Daily Chart

Source: OANDA fxTrade

• The UK100 index touched the highest in nearly four weeks yesterday as rumours circulated in the UK press that the actual Brexit could be delayed. It was quickly denied by UK negotiators, but the EU has since suggested it may be open to such an idea, but extremely wary of it
• The 55-day moving average at 6,930 acts as the first resistance point. Prices have not closed above this average since August 10
• NIESR releases its rolling three-month estimate of UK GDP for December. BOE’s Carney is also scheduled to speak.

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