Daily Markets Broadcast 2019-08-27

Daily Markets Broadcast

2019-08-27

Wall Street rebounds as trade pendulum swings to positive

US President Trump’s comments that China wants to make a trade deal “very badly” lifted risk sentiment yesterday, reversing early losses in the Asian session.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index rebounded from 11-day lows to finish in the black yesterday
• The index managed to rise back above the 200-day moving average at 25,597
• Today’s data slate is mostly second-tier, with June’s house price index and the Richmond Fed manufacturing index for August.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index also rebounded from the lowest level since August 16 on the better outlook for trade talks
• The index is hovering around the 200-day moving average at 11,666
• The first revision to Q2 German GDP is due today. Analysts are not expecting any change to the first reading of -0.1% q/q and 0% y/y.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China 50 index snapped a two-day losing streak yesterday following the sharp turnaround in risk appetite
• The index held above the 100-day moving average at 13,289, which has supported prices since August 19
• The main focus for China data this week will be the manufacturing PMI numbers for August. Economists are expecting a slight weakening to 49.6 from 49.7.

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