Daily Markets Broadcast 2019-07-24

Daily Markets Broadcast

2019-07-24

Wall Street higher as trade talks set to restart

US indices closed higher yesterday after it was confirmed that face-to-face negotiations between the US and China will take place on Monday. Boris Johnson is voted in as the new leader of the UK Tory Party and hence becomes the UK PM. The IMF downgraded global growth forecasts for this year and next by 0.1% from its April estimates. 2019 growth is seen at 3.2% and 2020 growth at 3.5%.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index rose for a second day yesterday, edging back toward record highs
  • The 100-day moving average at 26,185 and the 55-day average at 26,271 continue to track each other higher
  • The US Markit flash manufacturing PMI is seen improving to 51.0 in July from 50.6 in June.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 jumped the most in five weeks yesterday amid upbeat corporate earnings out of Europe and positive sentiment on Wall Street
  • The index has held above the 55-day moving average at 12,213, which has supported prices on a closing basis since June 3
  • Germany’s July Markit flash manufacturing PMI is expected to show a small rise to 45.2 from 45.0 in June. The Euro-zone reading probably held steady at 47.6, according to the latest survey of economists.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index advanced yesterday and could extend those gains into today’s session following the higher close on Wall Street and the news that trade talks will be held on Monday
  • The index has traded above the 100-day moving average, which finished at 13,197 yesterday, since June 10
  • In its latest update, the IMF also downgraded China’s growth forecast to 6.2% for this year and 6.0% for next. Both saw a reduction of 0.1%.

 

 

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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.