Daily Markets Broadcast 2019-05-29

Daily Markets Broadcast

2019-05-29

US indices decline on tariff, growth fears

Wall Street indices fell sharply into the close yesterday as investors mulled the lack of progress in the US-China trade talks and its implications for global growth. China avoids being labeled a currency manipulator in the US semi-annual review. Bank of Canada is seen keeping rates unchanged at 1.75% at today’s meeting.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index snapped a two-day losing streak and fell the most in two weeks yesterday amid growth concerns
• The index closed below the 200-day moving average at 25,418 for the first time since May 13. The next support level could be the 38.2% Fibonacci retracement of the December to May rally at 24,668
• The Richmond Fed manufacturing index is seen improving to 6 in May from 3 in April

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index looks poised for a second daily decline in early trading this morning. Angela Merkel is reportedly reconsidering her successor after poor results in last weekend’s elections
• The index is testing 55-day moving average support at 11,948, which has supported prices on a closing basis since February 8
• Germany’s unemployment rate is seen unchanged at 4.9% in May, according to the latest poll, but the economy is expected to have lost 8,000 jobs in the month.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index advanced for a third straight day yesterday, but gains were modest
• The index is tracking the 100-day moving average higher, which is currently at 12,502. This average has supported prices on a closing basis since January 23
• The fact that China was not labeled a currency manipulator in the US Treasury’s semi-annual review could give shares an additional boost.

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