Daily Markets Broadcast 2019-03-04

Daily Markets Broadcast

2019-03-04

Wall Street futures firmer on hopes a trade deal in sight

Weekend speculation that a US-China trade deal may be close to materializing lifted US indices in early trading this morning. China holds its national Party Congress this week, which could be a good platform to announce a deal.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index rebounded on Friday, and has extended those gains in early trading this morning, on speculation US and China are near a deal to end most tariffs
  • Resistance at the November high of 26,249 remains intact. Support may be found at the 200-day moving average at 25,109
  • The Wall Street Journal reported that the US could lift most, or even all, of its tariffs on Chinese goods with a summit between US President Trump and Chinese leader Xi Jinping possibly happening later this month. There are no data releases of note today.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index touched a four-month high on Friday as economic data matched, or beat, expectations
  • The index may have eyes on the 200-day moving average, which is at 11,855 today
  • The Euro-zone final Markit manufacturing PMI reading for February came in at 49.3, better than estimates of 49.2, while the region’s January unemployment rate was a below-forecast 7.8%, unchanged from December. There are no major economic data releases scheduled for today.

CN50USD Daily Chart

Source: OANDA fxTrade

  • China shares surged to the highest since April 11 on Friday, and could extend those gains at the open today
  • The 61.8% Fibonacci retracement of the January 2018 to January 2019 drop is at 13,109 and could be tested today
  • China’s National Party Congress is being held this week where policies will be decided for this year. A solution to the trade tariff standoff would be a welcome reprieve amid a slowing economy.

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.