Daily Markets Broadcast 2019-07-25

Daily Markets Broadcast

2019-07-25

Wall Street mixed amid soft data and disappointing earnings

The NAS100 and SPX500 indices both rose yesterday despite weak economic data, but the US30 index declined amid disappointing earnings. News that North Korean had fired two projectiles didn’t appear to dent risk appetite. ECB rate meeting today is expected to hold a dovish bias.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index fell for the first time in three days yesterday, weighed down by disappointing earnings from Boeing and Caterpillar
• The 100-day moving average at 26,200 and the 55-day average at 26,296 continue to track each other higher
• The US Markit flash manufacturing PMI slid to 50.0 in July, the weakest reading since September 2009. US durable goods orders are expected to rise 0.7% in June, a turnaround from May’s 1.3% decline.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 rose for a third straight day yesterday amid hopes that the ECB will announce additional easing measures at today’s rate meeting
• The index is above the 55-day moving average at 12,222 and looks to be heading toward the 11-month high struck earlier this month
• Germany’s IFO sentiment indices are all expected to show declines in July, the latest surveys of economists show. Markets are pricing in a 39% probability of a 10bps cut at today’s ECB meeting.

WTICOUSD Daily Chart

Source: OANDA fxTrade

• Crude oil prices fell the most in just over a week yesterday, unable to hold on to early gains after weekly data showed a strong drawdown from US stockpiles
• WTI failed to breach resistance on a closing basis at the 200-day moving average of $57.12 and the 55-day moving average at $57.35
• EIA data showed a drop in inventories of 10.8m barrels, much more than the 4m expected. OPEC members Saudi Arabia and Kuwait discussed resuming production in the Saudi-Kuwait neutral zone which had been halted more than four years ago, removing about 500,000 barrels per day from global supply.

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