Daily Markets Broadcast 2020-02-06

Daily Markets Broadcast

2020-02-06

US equities at, or near, record highs

The rotation into stocks from bonds and safe havens continues, with most US indices hitting new record highs, or hovering close by. US data showed resilience in the economy which helped oil prices, along with fears of production cuts.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 advanced for a third day yesterday, reaching a two-week high and just below the recent all-time high
• The 55-day moving average has risen to at 28,508 while the 100-day moving average is at 27,845
• The final Markit services PMI rose to 53.4 from 53.2 initially while the ISM equivalent jumped to 55.5 from 54.9. That’s the highest reading in five months. Q4 unit labour costs are seen easing to +1.3% from 2.5% in the previous quarter. Fed’s Kaplan is scheduled to speak.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index climbed for a third consecutive day yesterday, reaching the highest since January 27 in the process
• The index is above the 55-day moving average at 13,283 while the 100-day provides longer-term support below at 12,988
• Euro-zone data yesterday was mixed with a stronger services PMI but weaker retail sales. Today’s data includes German factory orders for December, while the European Commission releases its economic growth forecasts. Speeches from ECB’s Lagarde and De Guindos are also lined up.

WTICOUSD Daily Chart

Source: OANDA fxTrade

• Crude oil prices rebounded strongly yesterday, buoyed by economic data and the threat that OPEC+ could introduce deeper production cuts to stem the oil price slide
• WTI jumped the most in two months yesterday, rebounding from 13-month lows
• Weekly oil stockpiles data from the Energy Information Administration showed an increase of 3.36 million barrels in the week to January 31. It was more than the surveys suggested but below the previous week’s level of +3.55 million barrels.

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