Daily Markets Broadcast 2018-11-30

Daily Markets Broadcast

2018-11-30

Wall Street edges higher; G-20 now in focus

Wall Street consolidated Wednesday’s gains yesterday, edging slightly higher but lacking real momentum to follow through. The German index was hit by a Deutsche Bank scandal, while today’s China PMI disappointed. All eyes now on the G-20 meeting this weekend for leads going in to next week.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index touched the highest in 10 days yesterday before settling marginally in the black
• The index’s rally stalled just below the 61.8% Fibonacci retracement level of the November 8-23 drop at 25,481. The 55-day moving average was below the 100-day moving average for the first time since July 9
• Fed minutes showed almost all members saw another rate hike warranted “fairly soon” (read: December). Statements to emphasize the importance of incoming data.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index lacked momentum yesterday and closed lower. Deutsche Bank’s offices were raided by police with regard to a money laundering investigation. Discussions with Italy on its 2109 budget are still ongoing
• The 55-day moving average is at 11,685 and has capped prices on a closing basis since August 29
• Italy government may vote on budget changes Dec 3-4. German retail sales data due today and are seen rebounding +2.7% y/y, which could help the index build a base.

CN50USD Daily Chart

Source: OANDA fxTrade

• China shares gave back most of Wednesday’s gains yesterday as Trump increased his posturing on the US-China trade dispute ahead of the weekend G-20 meeting
• The CN50 index remains capped near term by the 55- and 100-day moving averages at 11,253 and 11,295, respectively
• China’s manufacturing PMI falls to 50.0 in November, lowest since July 2016, from 50.2. Forecast was for unchanged. Weaker data is putting a bit of pressure on equity markets.

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