Daily Markets Broadcast 2018-11-08

Daily Markets Broadcast

2018-11-08

Wall Street advances after midterm elections concluded

US indices rose Wednesday after the Democrats gained control of the House and the Republicans increased their majority in the Senate. US treasuries rose while the US dollar retreated. Today we see China’s trade data for October, while the FOMC meets later, with no change in rates expected.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index gained the most in three weeks yesterday, touching the highest since the large sell-off on October 10
• The index climbed and closed above the 55-day moving average for the first time since October 9. 78.6% Fibonacci retracement of the October drop is at 26,324
• Fed holds its FOMC meeting later today, though no change in rates is expected this time. Watch for any comments on the state of the economy or trade war impact.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index rose for a second day, buoyed by hopes that a solution to the Irish border issue for Brexit may be imminent
• The index is once again rising toward the 50% retracement of the September 27 to October 26 drop at 11,748
• Germany’s trade surplus probably narrowed to EUR18 billion in September from EUR18.3 billion the previous month, the latest survey of economists shows.

CN50USD Daily Chart

Source: OANDA fxTrade

• China shares rose for the first time in four days yesterday as the PBoC Governor Yi Gang affirmed its prudent, neutral monetary policy
• The index is sitting just above the 55-day moving average at 11,288, while the 100-week moving average at 11,795 may act as near-term resistance
• China’s October trade data is due today. Imports are seen rising 14.0% y/y, just below September’s +14.3%, and do not appear yet to be showing any strains from the US-China tariff war. The surplus with the US, which hit a record high last month, will see extra scrutiny to gauge the impact of recent tariffs.

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