Daily Markets Broadcast 2020-02-19

Daily Markets Broadcast

2020-02-19

Wall Street indices pressured by Apple warnings

Apple’s warning that it will miss Q1 targets due to the CoVid-19 virus saw markets open under pressure, and they stayed there. Apple’s warning comes as other companies update about supply chain disruptions on the back of factory closures in China.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index touched an eight-day low yesterday on broad-based weakness
  • The 55-day moving average has risen to at 28,737 while the 100-day moving average is at 28,061
  • US housing starts probably dropped 30.7% in January, according to the latest survey, while building permits likely fell 0.1% m/m. Fed’s Mester is due to speak later in the day.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell for the first time in three days yesterday as sentiment data disappointed, putting additional pressure on to the Wall Street mood
  • The index remains above the 55-day moving average at 13,361 while the 100-day average provides longer-term support below at 13,106
  • The February ZEW survey for Germany slumped to 8.7 compared with the 21.5 economists had expected. That’s the first worsening of the indicator in six months. There’s nothing major on the data front today apart from the Euro-zone’s current account and construction output data for December.

 

Gold Daily Chart

Source: OANDA fxTrade

  • Gold posted the biggest one-day gain since January 3 yesterday amid corporate concerns about the impact the CoVid-19 outbreak would have on supply chains, and the effect on global growth
  • Gold hit a six-week high yesterday to test the January 8 high of 1,612. The 55-day moving average has moved up to 1,536.19
  • The global total of deaths from CoVid-19 topped the 2,000 mark yesterday, with still only 5 reported outside of China. The rate of increase in the number of cases slowed to the least since the methodology of reporting was changed on February 13.

 

 

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.