Daily Markets Broadcast 2019-12-20

Daily Markets Broadcast

2019-12-20

Wall Street extends gains

US indices pushed to new highs yesterday despite some lacklustre data. UK shares rallied as the Bank of England kept rates unchanged while oil prices rose further.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index advanced for an eighth day yesterday, hitting new record highs in the process
• The 55-day moving average, which has supported prices since October 10, has risen to 27,506 while trendline support is around the 27,200 level
• US existing home sales fell 1.7% month-on-month in November, a much bigger drop than the 0.2% decline expected. The US Q3 GDP growth rate is not expected to be revised from the initial +2.1% reading.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index snapped a two-day losing streak yesterday but volatility and volumes were reduced
• The 55-day moving average has advanced to 12,994 and has also supported prices since October 10
• German consumer confidence, as measured by Gfk, is expected to increase modestly to 9.8 in January from 9.7 this month.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index looks set to slide for a second consecutive day today, though the declines have been modest in nature
• The 55-day moving average is at 13,940 and the index has traded above it since December 12
• Chinese Premier Li has said that downward pressure on the economy could be even bigger next year and we could see more complications during the year. There are no China data releases scheduled for today.

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