Daily Markets Broadcast 2019-11-21

Daily Markets Broadcast

2019-11-21

Stocks slide on Hong Kong confrontation

The US Hong Kong Democracy bill has now passed both the Senate and House and could be sent to US President Trump as early as today for either signing or vetoing. This could put the Phase 1 trade talks in jeopardy with one news outlet suggesting it could be delayed to 2020.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index is facing its third down day in a row today after touching the lowest level in a week yesterday
  • The 55-day moving average has risen to 27,063 while trendline support could be found near the 27,250 level
  • US existing home sales are seen rising 1.4% m/m in October, according to the latest survey of economists, a strong rebound from September’s -2.2%. Last night’s FOMC minutes had nothing new for markets. Fed’s Mester and Kashkari are scheduled to speak today.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell to the lowest since November 4 yesterday and looks set to extend the recent decline to a fourth day
  • The 55-day moving average has risen to 12,647. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960
  • Euro-zone consumer confidence probably improved to -7.3 in November from -7.6 last month, according to the latest survey. We can expect speeches from ECB’s Mersch and De Guindos along with the minutes of the last ECB meeting today.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index fell the most in more than a week yesterday as the US-China trade negotiations morphed into an exchange of barbs over the Hong Kong situation
  • The index still managed to close above the 55-day moving average at 13,894 yesterday, as it has done since October 8
  • US President Trump is expected to sign the Hong Kong Human Rights and Democracy Act into law today, which would require annual reviews of Hong Kong’s special status under US law and sanction officials deemed responsible for human rights abuses. China has already said it would retaliate if the law was passed.

 

 

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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