Daily Markets Broadcast 2019-04-10

Daily Markets Broadcast

2019-04-10

Wall Street dips as Trump takes the trade war to Europe

US President Trump threatened to impose tariffs on $11 billion of EU products due to subsidies to Airbus. Wall Street indices declined with the SPX500 index snapping a four-day rising streak. An IMF downgrade to global growth this year also impacted.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index fell the most in 2-1/2 weeks yesterday as risk appetite deteriorated on the back of the Trump threat. The IMF downgraded its 2019 global growth forecast to 3.3% from 3.5% in January. That would be the weakest growth rate in a decade.
• The index is falling toward the 55-day moving average at 25,642
• US consumer prices are expected to rise 0.3% m/m in March, an acceleration from February’s 0.2%, but is unlikely to give the Fed a headache. Fed’s Quarles is scheduled to speak but the markets will be waiting for the release of the latest FOMC minutes late in the session.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index tumbled the most in 2-1/2 weeks yesterday with Airbus seeing some pressure from the tariff threat
• The index has reached the 23.6% Fibonacci retracement of the March 22 – April 4 rally at 11,856. The 38.2% retracement is at 11,744
• It’s the ECB rate meeting today and, with data worsening since the last meeting where they announced a reintroduction of targeted loans, the market will be looking for a hint of additional easing measures.

CN50USD Daily Chart

Source: OANDA fxTrade

• China shares retreated further from 13-month highs yesterday amid broader equity weakness across Asia. The China50 index had touched the highest since February 27, 2018 on Monday
• The rally stalled just ahead of the 78.6% Fibonacci retracement of the 2018 decline at 13,917
• China’s new loans data are due tomorrow and are expected to rebound to 1.2 trillion yuan from 886 billion yuan in February. This could be a good indication that official stimulus measures are filtering through to the economy.

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