Daily Markets Broadcast 2019-02-08

Daily Markets Broadcast

2019-02-08

Wall Street weakens on trade deal uncertainty

US indices softened yesterday as investors fretted about whether US and China could strike a deal before the March 1 deadline. This came about as Trump said he would not meet Xi before the end of the month.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell for a second day yesterday amid concerns about whether a US-China trade deal can be brokered before March 1
  • The index is sitting just above the 200-day moving average at 25,014, with the 100-day moving average below at 24,887
  • There are no major data releases scheduled for today. Fed’s Bullard said US job market is performing well, but links to inflation are weaker.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell the most in two months yesterday as German data continued to disappoint and the ECB downgraded growth forecasts
  • The index fell to test the 55-day moving average support at 11,014
  • Germany’s trade surplus is seen narrowing to EUR18.4b in December from EUR19.0b, with imports seen rising 0.2% m/m.

HK33HKD Daily Chart

Source: OANDA fxTrade

  • Hong Kong returns after a three-day holiday and the index is expected to play catch up with the slippage seen on Wall Street during that time
  • The 200-day moving average at 27,800 could give way. The 55-day moving average is at 26,447
  • A perceived lack of progress in the US-China trade talks will likely weigh on the index. When asked whether he will meet China’s Xi this month, US President Trump emphatically declared “no”.

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.