Daily Markets Broadcast 2019-06-04

Daily Markets Broadcast

2019-06-04

The Daily Market Broadcast will pause from 5-7 Jun 2019 and resume on 10 Jun 2019.

Wall Street mixed on tech sector worries

Most US indices closed flat to higher yesterday, though the NAS100 index slumped on news of antitrust probes on the FAANG stocks. Fed’s Bullard said a rate cut may be warranted “soon” on inflation, trade war concerns. RBA is expected to cut its benchmark rate today.

 

NAS100USD Daily Chart

Source: OANDA fxTrade

  • The NAS100 index fell the most in three weeks yesterday on news of an antitrust probe against the tech sector, including Facebook and Amazon, would be launched. The index touched a three-month low
  • The index is down 11.7% from the April peak and is heading toward the 50% retracement level of the December to April rally at 6,829
  • US factory orders are expected to fall 0.9% m/m in April, according to the latest survey of economists. That comes after a 1.9% gain in March.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 recouped early losses to finish in the black yesterday
  • The index rebounded off the 200-day moving average at 11,620, which has supported prices on a closing basis since April 1. The 38.2% Fibonacci retracement of the 2019 rally is at 11,621
  • Consumer prices in the Euro-zone are seen rising 1.3% y/y in May, a slower pace than the +1.7% recorded in April. The unemployment rate is seen steady at 7.7% in April.

 

AU200AUD Daily Chart

Source: OANDA fxTrade

  • The AU200 index fell for a second straight day yesterday and is trading unchanged this morning ahead of the RBA rate meeting
  • The index is holding above the 55-day moving average at 6,294, as it has done on a closing basis since January 7
  • A 25 bps cut from the RBA is fully priced in to markets already. It will be more a question of forward guidance on the next move. Markets are currently pricing in almost two cuts by September while Westpac expects three, possibly four, by year-end.

 

 

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.