Daily Markets Broadcast 2019-07-30

Daily Markets Broadcast

2019-07-30

Wall Street plays the waiting game

US indices were little moved yesterday as investors await the FOMC decision tomorrow (early Thursday, Singapore time) and the July US employment report on Friday. The NAS100 index under-performed amid pressure on the FANG stocks. US-China trade negotiations restart in earnest today. The Bank of Japan holds its monetary policy meeting today.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index rose for a second day yesterday and is looking to carry the gains into a third day today, if early trading is an example
• The 55-day moving average at 26,381 continues to accelerate away from the 100-day moving average at 26,248
• US personal income probably rose 0.4% m/m in June while spending increased a lesser 0.3% m/m, today’s data may show. Pending home sales rose 1.1% in May and gains are expected to slow to +0.5% m/m in June.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index held steady yesterday, further consolidating last Thursday’s post-ECB losses, and has started positively this morning
• The index is holding above the 55-day moving average at 12,241, which has supported prices on a closing basis since June 3
• German consumer confidence, as measured by Gfk, is seen little changed at 9.7 in August after a 9.8 reading in July.

JP225USD Daily Chart

Source: OANDA fxTrade

• The Japan225 index has jumped the most in a week in early trading this morning ahead of the Bank of Japan’s rate meeting
• The index is approaching the July high of 21,842 touched in the 1st. The 100-week moving average is at 21,914
• The Bank of Japan is expected to keep both interest rates and bond buying programs unchanged at today’s meeting, though some expect additional talk on extra stimulus measures. This morning’s industrial production data for June was a disappointment, falling 3.6% m/m, more than the -2.0% expected.

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