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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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.