Daily Markets Broadcast 2019-10-31

Daily Markets Broadcast

2019-10-31

Stocks hit record highs as Fed cuts

The SPX500 and NAS100 indices hit record highs yesterday after the Fed cut rates by 25 bps, as expected. The Fed said it was “in a good place” and signaled it was now on hold and would only cut rates further if the economic situation deteriorated. US third quarter GDP growth came in above forecast.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index advanced for a fourth day yesterday, reaching the highest level since September 19, after the Fed cut rates by 25 bps
• The 100-day moving average has risen to 26,655, with the 55-day moving average tracking it higher at 26,642
• The US economy grew 1.9% in Q3, more than the 1.6% analysts had expected. Personal income is expected to rise 0.3% m/m last month, down from +0.4% in August. Spending is seen increasing 0.2% m/m in the same month.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index reversed early losses to the week’s low to close marginally in the black yesterday
• The 55-day moving average at moved above the the 100-day moving average at 12,232 for the first time since September 2
• Euro-zone GDP growth is expected to slow to +1.1% y/y in Q3, down from +1.2% in Q2. German retail sales are also due and are expected to rise 0.2% m/m in September, a slower pace than August’s +0.5%.

UK100GBP Daily Chart

Source: OANDA fxTrade

• The UK100 index is taking the snap December election in its stride and is little changed on the week
• The index appears to be struggling to overcome the 100-day moving average at 7,335. The index has failed to close above it for the past five days, despite repeated tests
• UK consumer confidence, as measured by Gfk, fell to -14 in October, data released this morning showed. There are no other data releases scheduled for today.

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