Daily Markets Broadcast 2019-01-28

Daily Markets Broadcast

2019-01-28

Wall Street rallies as shutdown ends

Friday’s announcement that the longest ever US government shutdown would end, at least temporarily, supported stock markets as the economic drag dwindles. China officials head to Washington ahead of trade negotiations later this week. Australia markets are closed for a public holiday.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • President Trump agreed to reopen the US government for three weeks on Friday, though the issue of funding for the Mexico wall still remain. The US30 index hit the highest since December 12 last Friday
  • The index is nearing the convergence of the 200- and 100-day moving averages at 24,270 and 24,983, respectively
  • Despite the climb-down on the shutdown, Trump’s State of the Union address is unlikely to go ahead tomorrow. House Speaker Pelosi said she will work with Trump to find a new date.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index advanced to the highest in almost eight weeks on Friday, led by positive sentiment in Asia. Gains were tempered a tad by another set of weak German data, this time the IFO surveys for January
  • The 100-day moving average at 11,426 could be the next resistance hurdle for the index to overcome
  • January”s German IFO readings came in below forecast on Friday, with the expectations index slumping to 94.2, the weakest since 2012. The data empasised the ECB’s call that downside risks to the economy have increased.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • Chinese shares posted their biggest one-day gain in a week on Friday amid hopes that the less-aggressive stance on the government shutdown could filter through in to trade negotiations and promote a deal
  • The China50 index hit the highest since December 5 on Friday, and is approaching the 200-day moving average at 11,463, which has held since April 13
  • Lower level Chinese official head to Washington to carry on trade discussions ahead of the “big guns” meeting on January 30-31.

 

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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