Daily Markets Broadcast 2019-10-07

Daily Markets Broadcast

2019-10-07

Wall Street gains after mixed employment report

US indices rose on Friday after the US unemployment rate fell to near a 50-year low in September. However, the number of jobs added was below forecast, and wages growth was the lowest in almost two years. There were more violent protests in Hong Kong over the weekend. China is still on its week-long National Day celebrations.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index jumped the most in more than five weeks on Friday, as investors preferred to focus on the decline in the unemployment rate
• The index rose to test the 55-day moving average, which is at 26,520 today
• There are no major US data releases scheduled today, though we have a speech from Fed Chairman Powell scheduled. Late Friday he said that the Fed wants inflation to be higher and needs to get it back to 2%.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index rose for a second day on Friday, echoing the rally on Wall Street, but is under pressure in early Asian trading this morning
• The index has held above the 200-day moving average at 11,820 and is now straddling the 55-day moving average at 12,123
• German factory orders are expected to contract for a second straight month in August, the latest survey of economists shows. Estimates suggest a decline of 1.5% after a 2.7% contraction in July.

HK33HKD Daily Chart

Source: OANDA fxTrade

• The HongKong33 index managed its first weekly gain in three weeks last week but this week may be different given the apparent escalation in violent protests over the weekend. Onshore markets are closed today
• The index remains capped by the 55-day moving average at 26,494, which has contained prices since September 17
• HK Administrator Carrie Lam said can no longer tolerate demonstrators destroying the city. The weekend saw mainland China soldiers issuing arrest warnings to protesters after lasers were pointed at China barracks. This was the first interaction with mainland military forces since the protests began four months ago.

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