Daily Markets Broadcast 2019-08-28

Daily Markets Broadcast

2019-08-28

Wall Street slides as trade tensions simmer

A positive start on Wall Street yesterday was wiped out amid persistent concerns about the US-China trade war and an inverted US yield curve, which many view as the forerunner to a recession. Oil prices rose following a heavy inventory drawdown.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index retreated from highs for the week to close lower as trade war and recession fears dominated
  • The index is still holding above the 200-day moving average at 25,599. That moving average has supported prices on a closing basis for two weeks
  • There are no major US data releases scheduled today. We can expect speeches from the Fed’s Barkin and Daly.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks set to climb for third straight day today after posting early gains this morning. A more positive mood on Brexit discussions is helping sentiment
  • The index has regained the 200-day moving average at 11,667. The gains made so far this week, if maintained, could result in the first up-week in five weeks
  • The first revision to Q2 German GDP held no surprises, with no change to the first reading of -0.1% q/q and 0% y/y. The main event on today’s calendar will be Germany’s Gfk consumer confidence survey for September, which is seen sliding to 9.6 from 9.7 this month.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate (WTI) jumped the most in two weeks after the American Petroleum Institute announced the biggest weekly drawdown of inventories since January 2018. Inventories were cut by 11.1 million barrels
  • The index is rising toward the 200-day moving average at $55.99 and the 55-day moving average at $56.17. The 55-day moving average moved above the 200-day moving average last week
  • Tonight we see the weekly stockpiles data from the Energy Information Administration. Analysts’ estimates suggest a drawdown of 2.13 million barrels after a 2.73 million barrel decrease last week.

 

 

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.