Daily Markets Broadcast 2019-05-24

Daily Markets Broadcast

2019-05-24

Wall Street sinks amid lack of progress in trade talks

Wall Street indices extended recent losses yesterday with a lack of new developments in the US-China trade negotiations raising fears of a global slowdown. Oil prices collapsed as a result.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell the most in 10 days yesterday with trade war troubles dominating sentiment. Energy stocks came under pressure as oil prices tumbled
  • The index closed below the 100-day moving average at 25,539 for the first time in 10 days. The 200-day moving average is at 25,416 today
  • US durable goods orders are expected to fall 2.0% in April following a 2.8% increase in March.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index had its worst down day since May 13 yesterday following some data misses for both Germany and the Euro-zone. Weakness on Wall Street didn’t help either
  • Support at the 55-day moving average at 11,921 remains intact and has supported prices on a closing basis since February 8
  • The Markit manufacturing PMI reading for Germany for May fell to 44.3, a three-month low, while the Euro-zone reading fell to 47.7. Both were below economists’ estimates. There are no data releases scheduled for today.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • WTI prices fell the most in six months yesterday as the ongoing US-China trade conflict raised questions about global economic growth in the future
  • Prices fell to the lowest in 10 weeks, testing the 100-day moving average at 67.938 for the first time since March 8. Fibonacci support may be found at the 57.20 level
  • Weak PMI readings across Europe added to the negative sentiment for global oil demand. An easing in US-Iran tensions also eased supply concerns.

 

 

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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