Daily Markets Broadcast 2019-01-23

Daily Markets Broadcast

2019-01-23

Wall Street falls as economic outlook sours

US indices extended the downward trajectory yesterday as weak earnings and a poor outlook from reporting companies hit risk appetite.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index fell the most in nearly three weeks yesterday but rebounded off the lows after the US assured that trade negotiations with China were still on. Earlier in the session, rumours circulated that a mid-level meeting had been cancelled. The US confirmed it was never due to happen in the first place
• The index is retesting the 55-day moving average at 24,341, which it breached to the upside last Friday
• US existing home sales decelerated in December, data released yesterday showed. Senate leaders have agreed to votes on rival proposals for reopening the government for the first time since the shutdown began last month. President Trump has already said he will veto any measures that don’t include funding for his Mexico wall.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index fell for a second day yesterday, led by weakness in Asia and disappointing results from UBS. A lack of definitive progress on the Brexit front also pressured
• The index is back below the 55-day moving average at 11,069 and is testing Fibonacci support at 11,029, which is 23.6% retracement of the December-January rally
• Euro-zone consumer confidence is expected to dip to -6.5 in January from -6.2 the previous month. Yesterday, Germany’s ZEW survey was not as bad as feared, coming in at -15.0 instead of -18.4 forecast.

HK33HKD Daily Chart

Source: OANDA fxTrade

• The Hong Kong33 index appears to be stalling ahead of the 200-day moving average as weakness on Wall Street influences
• The 200-day moving average is at 27,930 while the daily slow stochastics momentum indicator is giving bearish signals
• Hong Kong press is reporting that the “Made in China 2025” plan has been hurt by the trade war, with advanced manufacturing sectors in China facing weakening demand.

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