Daily Markets Broadcast 2019-05-17

Daily Markets Broadcast

2019-05-17

Note: The Daily Market Broadcast will pause on 20 May 2019 and resume on 21 May 2019

Wall Street extends gains

US indices advanced for a third day yesterday, helped by better-than-expected data and some strong earnings reports from Wallmart and CISCO, while ignoring the tensions in the US-China trade talks. Australia heads to the polls this weekend.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index rose for a third day yesterday but has shown a mild retracement since trading opened in Asia this morning
• The 100-day moving average at 25,436 is above the 200-day moving average at 25,407 for the first time since January 28. The 55-day moving average is at 26,019
• US housing starts rose 5.7% in April while building permits rose 0.6%. The only major release today is the Michigan consumer sentiment index for May, which is seen climbing to 97.5 from 97.2.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index looks poised to advance for a third straight day today after touching a nine-day high yesterday
• The 55-day moving average at 11,877 continues to support prices, as it has done on a closing basis since February 8
• The pace of increase in consumer prices in the Euro-zone is expected to slow to +0.7% m/m in April, latest surveys show. The growth in construction output is seen contracting 0.8% m/m in March.

CN50USD Daily Chart

Source: OANDA fxTrade

• China shares were boosted to nine-day highs yesterday despite the uncertainty surrounding trade talks and the US move to blacklist Huawei
• The China50 index is rising toward the 55-day moving average at 13,167
• Hong Kong releases Q1 GDP growth numbers today. The last quarter of 2018 saw growth contracting 0.3% q/q, only the second negative growth quarter in the last ten.

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