Daily Markets Broadcast 2018-10-31

Daily Markets Broadcast


Wall Street ends a volatile day sharply higher

Wall Street closed strongly yesterday, bouncing from near-four month lows, amid gains in the tech and transport sectors. China’s manufacturing PMI slides to 50.2 in October, below estimates.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index posted its biggest one-day gain in two weeks amid strong buying in the last hour of trading. Gains were led by the tech and transport sectors
  • The index has traded below the 200-day moving average, which is at 25,092 today, for the past five days
  • The run-up to Friday’s nonfarm payroll report starts today with the release of October’s ADP employment change, which is expected to show an add of 189,000 jobs.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The DE30 index rose for a second straight day yesterday, despite disappointing data, but is till on track to post its worst month since February
  • Support at the 55-month moving average at 11,187 remains intact, while the 200-week moving average caps at 11,487
  • Euro-zone Q3 GDP growth came in below forecast at +0.2% q/q vs +0.4%. Today we see October CPI data, which is expected to accelerate to +2.2% y/y from +2.1%. Slower growth and higher inflation is generally viewed as not a good combination for equities.

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index rose for the first time in three days yesterday, still holding above the five-week low struck mid-month. However, it’s still facing its worst month since February
  • The 55-month moving average at 10,550 still lends support while the next resistance point is possibly at 11,252, the 55-day moving average
  • October manufacturing PMI came in below forecast with a 50.2 print, lowest since July 2016, which was the last time the index was below the 50 expansion/contraction threshold. The disappointing number could hamper sentiment.

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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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