Daily Markets Broadcast 2019-05-22

Daily Markets Broadcast

2019-05-22

Wall Street rebounds on Huawei relief

Tech stocks rebounded yesterday after US President Trump dialed back the blacklisting of Huawei, granting limited relief for consumers and carriers that do business with them. Other US indices also tracked higher though the cloud of the trade talks slowed gains.

 

US30USD Daily Chart

Source: OANDA fxTrade

 

  • The US30 index snapped a two-day losing streak on the Huawei pause
  • The index is sandwiched between 55-day moving average resistance at 26,013 and 100-day moving average support at 25,514
  • The minutes of the last FOMC meeting will be released late in the US session and will be scrutinised to learn the latest economic themes being considered by the Fed.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index also snapped a two-day losing streak after Euro-zone chip makers were given a temporary reprieve from the Huawei sanctions
  • The 55-day moving average at 11,906 continues to support prices, as it has done on a closing basis since February 8
  • There are no major data releases from either the Euro-zone or Germany scheduled for today. ECB’s Draghi is scheduled to speak at 0730GMT.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index looks set to advance for a second day as global markets breathe a (maybe temporary) sigh of relief
  • The index is trapped between 55-day moving average resistance at 13,150 and 100-day moving average support at 12,387. The 100-day average has supported prices since January 22
  • China’s ambassador to the US has reiterated that China remains ready to hold trade talks and is ready to address trade imbalances with the US by buying more US goods and services.

 

 

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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