Daily Markets Broadcast 2020-02-07

Daily Markets Broadcast

2020-02-07

Wall Street powers higher on earnings, virus hopes

US indices hit fresh highs yesterday as corporate earnings came in strong and hopes still exist that the coronavirus is being contained. China reports trade data for January while the US nonfarm payroll release is due today.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index advanced for a fourth day yesterday, reaching a fresh all-time high
• The 55-day moving average has risen to at 28,537 while the 100-day moving average is at 27,867
• The US economy probably added 160,000 jobs in January, according to the latest survey of economists, an increase from December’s 145,000. Unemployment is seen unchanged at 3.5%.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index climbed for a fourth consecutive day yesterday, but fell short of overcoming the January 22 high at 13,645
• The index is above the 55-day moving average at 13,290 while the 100-day provides longer-term support below at 12,999
• German industrial production data is expected to show a 0.2% m/m decline in December, down from November’s 1.1% gain.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index snapped a two-day winning streak yesterday and looks poised to extend the negative mood into today
• The index reached the highest in 10 days yesterday but stopped short of the 200-day moving average at 13,595
• China’s exports are expected to fall 4.8% y/y in Lunar New year-affected data. Imports are seen falling 6.0% y/y resulting in a narrowing of the trade surplus to $38.64 billion from $47.21 billion.

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