Daily Markets Broadcast 2019-05-28

Daily Markets Broadcast

2019-05-28

Wall Street steadies in holiday-subdued activity

Wall Street index futures traded marginally higher during the US Memorial Day holiday, ignoring comments from US President Trump that he was not yet ready to do a trade deal with China. Alibaba weighs a second listing in Hong Kong.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index has edged higher for a third straight day in early trading this morning, despite negative comments from Trump about a China trade deal
  • The 200-day moving average at 25,419 is still acting as a support level. Prices are currently tracking the 100-day moving average higher, which is at 25,612 today
  • It’s another slow day on the data front with the Dallas Fed manufacturing index for May the only item of note.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks set to advance for a third straight day today as the market digests EU election results that were less anti-EU than feared
  • Support at the 55-day moving average at 11,941 remains intact and has supported prices on a closing basis since February 8
  • Euro-zone industrial confidence is expected to decline to -4.3 in May from -4.1 in April. That would be the lowest reading since August 2016.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index staged a modest rebound yesterday but may come under pressure today after Trump’s overnight comments regarding the trade talks. However, news that Alibaba is considering a $20b share listing in Hong Kong may lend support
  • The index is above the 100-day moving average at 12,481. This average has supported prices on a closing basis since January 23
  • China’s industry ministry has acknowledged that US tariff increases will lead to higher enterprise costs, lower competitiveness and fewer orders, but the impact on the manufacturing sector is manageable.

 

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.