Daily Markets Broadcast 2020-01-22

Daily Markets Broadcast

2020-01-22

Stocks pressured as Wuhan virus spreads

US indices came under pressure yesterday after the first case of the corona virus in the US was reported. News of delays to the un-grounding of Boeing’s 737MAX jet hurt the US30 index. The Bank of Canada is expected to leave rates unchanged at its rate meeting later today.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index snapped a six-day winning streak yesterday amid combined pressures of the spreading corona virus and a weak Boeing performance
  • The 55-day moving average, which has supported prices since October 10, has moved up to 28,282
  • US existing home sales probably rose 1.2% m/m in December, according to the latest survey of economists, almost recouping all of November’s 1.7% decline.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index retreated from two-year highs yesterday as Trump said on the sidelines of the Davos forum that he was fully prepared to slap tariffs on EU car exports
  • The index is above the 55-day moving average at 13,255, which has supported prices on a closing basis since October 8
  • The German ZEW economic sentiment survey for January jumped to 26.7, much higher than the 15.0 anticipated and the highest reading since 2015.

 

UK100GBP Daily Chart

Source: OANDA fxTrade

  • The UK100 index touched the lowest in two weeks yesterday, echoing sentiments elsewhere. The index rebounded slightly into the close after UK data out-performed
  • The 55-day moving average has moved up to 7,445, and has supported prices since December 13
  • UK average earnings (including bonus) jumped 3.2% In November from a year earlier, more than the 3.1% economists had expected and the same pace as in October.

 

 

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.