Daily Markets Broadcast 2019-03-05

Daily Markets Broadcast

2019-03-05

Wall Street slumps on growth concerns

Reports suggesting the US economy was suffering the most from the tariff war pressured Wall Street yesterday, though most indices closed off their intra-day lows. China’s NPC set 2019 growth target at 6.0-6.5%, in line with expectations. Oil prices rose as Russia plans to speed up production cuts.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell the most in more than a month yesterday, pressured by expectations that US growth may be downgraded as a direct result of the trade tariff war
  • Resistance at the November high of 26,249 remains intact. Support may be found at the 200-day moving average at 25,112
  • The ISM non-manufacturing index is expected to outperform the manufacturing one in February, with a reading of 57.2 from 56.7 in January. New home sales are seen falling 9.1% m/m in December, further evidence of how this sector is lagging behind the rest of the economy.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index touched a four-month high yesterday before closing in the red for the first time in three days
  • The index appears to be shying away from the 200-day moving average, which is at 11,847 today. Trendline support (former resistance) may be found around the 11,288 level
  • Euro-zone retail sales are expected to rebound in January from December’s decline. Economists are forecasting a 0.8% gain from a month earlier.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • Oil prices overcame weakness in the equity markets to rise 1.3% yesterday after Russia’s energy minister said they plan to accelerate output cuts this month
  • WTI has been oscillating around the 100-day moving average, which is at 55.09 today, for the past two weeks. The 55-day moving average at 51.985 has supported prices on a closing basis since January 17
  • Crude oil output from OPEC hit a four-year low in February as production cuts took hold. API weekly crude oil stocks are due later today. Last week saw a drawdown of 4.2 million barrels.

 

 

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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