Daily Markets Broadcast 2019-07-12

Daily Markets Broadcast

2019-07-12

Wall Street attempts new record highs

It was a mixed performance by US indices yesterday. The US30 index hit a new record high but both the SPX500 and the NAS100 failed to advance beyond Wednesday’s highs. German shares under-performed amid profit warnings. China trade data are due today.

US30USD Daily Chart

Source” OANDA fxTrade

• The US30 index rose the most in three weeks yesterday, climbing above the 27,000 mark for the first time, and early moves this morning have taken the index even higher
• The 100-day moving average at 26,081 is edging closer to the 55-day average at 26,131
• US inflation rose more than expected in June, which questioned the validity of a Fed rate cut this month. Today we see producer prices for the same month, while Fed’s Evans is scheduled to speak.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index fell for a sixth straight day yesterday, the longest losing streak since October last year, as the cloud of Deutsche Bank hit sentiment and more companies issued profit warnings
• The index touched the lowest in two weeks, edging toward the 55-day moving average at 12,202
• German consumer prices were unchanged from the initial reading in June, but the harmonized indices were revised higher. Wholesale prices are expected to rise 0.2% m/m and 1.3% y/y in June, surveys show.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index slid to the lowest level in two weeks yesterday amid a lack of news in the US-China trade talks. Trump accused China of not complying with an agreement to increase its purchases of US agricultural products. China has no documentation of that agreement
• The 55-day moving average at 13,140 looks poised to move below the 100-day moving average at 13,130. That would be the first time since February 26
• China’s trade data for June are due at 1000hrs Singapore time. Exports are seen down 2.0% y/y, imports down 4.5% y/y resulting in a widening of the trade surplus to $44.7 billion. New loans for July could be released today. The are expected to increase by 1.7 trillion yuan.

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