Daily Markets Broadcast 2018-11-14

Daily Markets Broadcast

2018-11-14

Stocks look to bounce on trade talk hopes

It was another negative day for US equities yesterday, though that may change today following news that the US and China are back to talking about trade issues “at all levels”. US equity futures have rallied this morning, potentially snapping a three-day decline. Oil prices continued to drop.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index looks set for its first up-day in four days on hopes that new US-China trade talks will be productive
• The index’s decline stalled at the 50% retracement level of the Oct29 to Nov8 rally at 25,158. The 100-day moving average is at 25,557
• US October CPI data is due today and is expected to show an acceleration in price gains of 0.3% m/m and 2.5% y/y compared to September’s increase.

DE30EUR Monthly Chart

Source: OANDA fxTrade

• The Germany30 index rebounded from two-week lows yesterday in reaction to more positive Brexit headlines. Irish broadcaster RTE tweeted that EU & UK negotiators have agreed on a text that deals with the Irish border
• The 55-month moving average at 11,223 appears to be holding as support for now
• German Q3 GDP is expected to fall 0.1% q/q, surveys suggest. That would be the first contraction since 2014, and could slow the index’s rebound.

WTICOUSD Daily Chart

Source: OANDA fxTrade

• WTI slumped the most in four months yesterday, hitting the lowest level in a year, as investors consider a market that is facing heavy over-supply issues. It has fallen almost 29% from the October peak
• The commodity hit $54.80 yesterday, lowest since Nov 14, 2017. This month it breached the 55-day moving average at $57.43 for the first time since March
• API weekly crude stocks data as at Nov 9 is due today. Last week saw 7.83 million barrels added to inventories, the third straight week of increases.

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