Daily Markets Broadcast 2019-07-15

Daily Markets Broadcast

2019-07-15

Wall Street tops record levels

US indices powered ahead on Friday, reaching new record highs in most cases, with expectations for a Fed rate cut this month still high despite hotter inflation data last week. China releases Q2 GDP data today. Japan markets are closed for a public holiday.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index advanced for a third straight day Friday, posting the biggest daily gain in three weeks
• The 100-day moving average at 26,095 and the 55-day average at 26,149 are gradually converging and could crossover by the end of the month
• US producer prices rose more than expected in June, posting a 0.1% m/m and 1.7% y/y increase, which echoed the slightly firmer consumer price indices that were released earlier in the week. There are no major data releases scheduled for today.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index fell for a seventh straight day yesterday, equaling the longest losing streak since October last year, despite better-than-expected economic data
• The index touched the lowest in two weeks and is gravitating toward the 55-day moving average at 12,201
• Euro-zone industrial production rose 0.9% m/m in May, beating estimates of a 0.2% gain. There are no major economic data releases scheduled for today.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index rebounded from two-week lows on Friday, buoyed by the positive sentiment on Wall Street
• The 55-day moving average at 13,142 moved below the 100-day moving average at 13,146 for the first time since February 26. This is often interpreted as a medium-term bearish signal
• The Chinese economy probably grew 6.2% y/y in the second quarter, according to the latest survey of economists, slower than Q1’s 6.4% expansion. An even lower number would increase pressure on the authorities to introduce larger stimulus measures for the economy to combat the weakening impact of the trade war with the US.

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.