Daily Markets Broadcast 2019-10-21

Daily Markets Broadcast

2019-10-21

Wall Street slides on growth concerns

US indices edged lower on Friday as concerns about slowing global growth superseded strong earnings reports. British MPs vote on Boris Johnson’s latest Brexit deal was cancelled as an amendment to the Benn Act was passed, which implies a Brexit extension may be coming.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell the most in 10 days on Friday despite strong banks’ reports. It’s the turn of the tech sector this week
  • The index has retreated from the 78.6% Fibonacci retracement of the drop from September 12 to October 3 at 26,974. The 100-day moving average is at 26,568 today
  • Fed Vice Chair Clarida (moderate, voter) said the Fed will act appropriately to sustain expansion as the economy faces “evident risks”, adding that monetary policy is not on a preset course. There are no data releases scheduled for today.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index has opened steady this morning despite the developments in the UK Brexit deal
  • The index closed flat on Friday, consolidating below the 14-1/2 month high from Thursday
  • German producer prices are expected to fall 0.1% m/m in September, according to the latest survey of economists. That’s a slower pace of decline from August’s -0.5%.

 

JP225USD Daily Chart

Source: OANDA fxTrade

  • The Japan 225 index is consolidating last week’s move to 10-1/2 month highs and has started in the black this morning
  • The index is consolidating above the 61.8% Fibonacci retracement of the October 2018 to December 2018 drop at 22,469. That level was breached to the upside last Tuesday
  • The index opened higher this morning despite disappointing trade data for September. Exports fell 5.2% y/y, a bigger drop than the -4.0% analysts had expected, while imports fell less, -1.8% y/y. As a result, the trade deficit narrowed to ¥123.0b, the least in three months.

 

 

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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