Daily Markets Broadcast 2020-03-03

Daily Markets Broadcast

2020-03-03

Wall Street surges on central bank assurances

US indices rallied strongly as central banks from the US to Japan promised to take action to support local economies hit by the CoVid-19 outbreak. That said, the Reserve Bank of Australia is expected to keep rates unchanged at today’s policy meeting.

US30USD Daily Chart

Source: OASNDA fxTrade

• The US30 index jumped the most since December 2018 yesterday and looks set to extend the current rally into a third day today
• The 200-day moving average is at 27,299 while the 50% retracement of the February 12-28 drop is at 27,143
• The ISM-NY business conditions index is expected to slump to 24.1 in February from 45.8 the previous month, latest surveys show. The IBD/TIPP economic optimism reading for March is expected to fall to 58.1 from 59.8. Fed’s Mester and Evans are scheduled to speak.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index rallied for the first time in eight days yesterday amid a market reversal on the back of central bank assurances
• The index is rising toward the 200-day moving average, which is at 12,636 today
• The final Markit manufacturing PMI readings for Germany and the Euro-zone for February were revised higher from preliminary readings and, surprisingly, improved on January’s readings. Today we see Euro-zone flash CPI estimates for February and the unemployment rate for January. ECB’s De Guindos is due to speak.

WTICOUSD Daily Chart

Source: OANDA fxTrade

• Oil prices rebounded yesterday for the first time in eight days amid a shift in risk appetite and heightened prospects that OPEC and its allies will trim production at a meeting later this week
• West Texas Intermediate (WTI) is higher for a second consecutive day and has climbed above the 38.2% Fibonacci retracement of the February 20 to March 2 drop at $47.66. The 50% retracement is at $48.95
• The American Petroleum Institute (API) will release weekly crude oil stockpiles data to February 28 today. Last week saw an increase in inventories of 1.3 million barrels, the fourth increase in a row.

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