Daily Markets Broadcast 2019-10-08

Daily Markets Broadcast

2019-10-08

Wall Street slides on dimmed trade expectations

US indices traded in narrow ranges yesterday, eventually succumbing to pressure after China had said they may be prepared to agree to a partial trade deal, but would not alter its intellectual property laws. Onshore China markets re-open after a week-long break.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index declined for the first day in three yesterday amid scaled back expectations for the high-level US-China trade talks later this week
  • The index retreated from the 55-day moving average, which is at 26,505 today. That moving average has capped prices on a closing basis so far this month
  • US producer prices are expected to rise 1.8% y/y in September, the same pace as August. We can anticipate speeches from Fed’s Evans and Powell.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks set for a fourth daily gain today amid hopes for some positive news in the Brexit deal-or-no-deal front
  • The index tested the 100-day moving average yesterday but failed to close above it
  • German factory orders came in worse than expected yesterday and this could have a negative impact on today’s release of industrial production numbers for August. Surveys suggest IP fell 0.3% m/m, which would be the third month in a row it has been below zero.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • Onshore China markets are due to open after a week-long break. During the week, futures markets have traded in a narrow range, posting declines for the past two sessions
  • The index is currently sandwiched between the 55-day moving average at 13,516 and the 100-day moving average at 13,387. The 100-day average has supported prices on a closing basis since August 16
  • Caixin’s China services PMI is seen improving to 52.9 in September from 52.1 the previous month. That would be the second monthly improvement in a row.

 

 

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.