Daily Markets Broadcast 2020-01-15

Daily Markets Broadcast

2020-01-15

Wall Street pauses near record highs

US equities moved higher yesterday but have started negatively this morning as the US and China prepare to sign the first phase of a trade deal later today. Reports circulated that there will be no more US tariff cuts before the November election, subject to China’s adherence to the terms of the deal.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index is hovering just below record highs after again touching above the 29,000 mark yesterday
• The 55-day moving average, which has supported prices since October 10, has moved up to 28,087
• It’s mostly second-tier data on the agenda today, with December producer prices and the January NY Empire State manufacturing index the only items scheduled. Fed’s Harker is also due to speak.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index looks set to slide for a second day following the negative mood on Wall Street
• The index is still above the 55-day moving average at 13,200, which has supported prices on a closing basis since October 8
• Euro-zone industrial production probably fell 1.1% y/y in November, according to the latest survey of economists. The region’s trade surplus is seen narrowing to €23.3 billion in the same month from €28.0 billion prior. There are no German data releases scheduled for today.

WTICOUSD Daily Chart

Source: OANDA fxTrade

• West Texas Intermediate (WTI) closed higher yesterday for the first time in seven days despite data showing an increase in US oil stockpiles
• WTI is holding above the 100-day moving average at $57.19, which has supported prices since December 3
• Data released yesterday by the American Petroleum Institute showed an increase of 1.1 million barrels in the week to January 10, a sharp turnaround from the previous week’s decline of 5.95 million barrels. Tonight’s data from the Energy Information Administration is expected to show a decline of 750,000 barrels after a 1.16 million barrel increase the week earlier.

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.