Daily Markets Broadcast 2019-08-15

Daily Markets Broadcast

2019-08-15

Wall Street tumbles as recession fears intensify

Wall Street stocks nose-dived yesterday after the US yield curve inverted for the first time since 2007, which is often seen as a precursor to a recession. Weak data out of China added to the malaise. The key Australian jobs report is due today

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index gave back all of the previous day’s gains, and more, yesterday amid gloomy global data and crashing US yields
  • The index closed below the 200-day moving average at 25,582 for the first time in 10 days. The 78.6% Fibonacci retracement of the June-July rally is at 25,120
  • US retail sales probably rose 0.3% m/m in July, the latest survey of economists shows. Industrial production likely increased 0.2% m/m in the same month.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell the most this year after GDP data confirmed the Germany economy contracted in the second quarter
  • The index closed below the 50% retracement level of the December-July rally at 11,470 for the first time since March 28
  • German GDP fell 0.1% q/q in Q2, the first negative reading in three quarters, data released yesterday showed. There are no major German or Euro-zone data releases scheduled for today.

 

AU200AUD Daily Chart

Source: OANDA fxTrade

  • The Australia200 index fell the most in seven sessions yesterday in response to weak data out of China. The index has risen slightly this morning ahead of the July jobs report
  • The index closed below the 100-day moving average at 6,472 for the first time since January 23
  • The Australian economy probably added 14,000 jobs in July, the latest forecasts from economists suggests. that’s a sharp increase from June’s 500 jobs. The unemployment rate is seen holding steady at 5.2%.

 

 

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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