Daily Markets Broadcast 2020-02-05

Daily Markets Broadcast

2020-02-05

The Wall Street rebound continues

A better feeling about the spread of the coronavirus outside of China prompted investors to rotate out of safe haven bond and gold positions and back in to stocks, boosting Wall Street indices.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 advanced for a second day yesterday amid hopes that the spread of the coronavirus has slowed
• The index closed above the 55-day moving average at 28,472 for the first time in three days. The 100-day moving average is at 27,817
• The final Markit services PMI is seen unchanged from the initial reading of 53.2 while the ISM equivalent is expected to hold at 56.0. Fed’s Brainard is scheduled to speak.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index rose the most since January 2 yesterday on better risk appetite
• The index closed above the 55-day moving average at 13,273 for the first time in four days
• The final Markit services PMIs for Germany and the Euro-zone are due today, with initial readings of 54.2 and 52.2, respectively. Euro-zone retail sales probably fell 0.9% m/m in December, the latest survey of economists shows. We can also expect speeches from ECB’s De Guindos, Lane and Lagarde.

XAU/USD Daily Chart

Source: OANDA fxTrade

• Gold prices fell the most in three months yesterday amid a broad-based uptick in risk appetite as investors monitored global efforts to contain the spread of the coronavirus
• The precious metal is falling toward the 55-day moving average, which has moved up to 1,515
• India’s gold imports plunged 48% in January from a year earlier as a rally in local prices to near record highs prompted buyers to curtail purchases, according to government sources.

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