Daily Markets Broadcast 2019-07-29

Daily Markets Broadcast

2019-07-29

Wall Street climbs as growth tops estimates

US indices advanced yesterday, with the SPX500 index hitting a new record high, after US Q2 growth came in higher than expected while the NAS100 index was lifted after Google beat earnings forecasts.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index snapped a two-day losing streak on Friday but lagged behind the other two major indices
• The 55-day moving average at 26,349 is accelerating away from the 100-day moving average at 26,231
• US economic growth slowed to +2.1% annualized in the second quarter, down from +3.1% in Q1 but above expectations of a 1.8% expansion. Today’s data slate includes the July Dallas Fed manufacturing business index, which is seen improving to -5.1 from -12.1 in June. It would still be the third straight month in negative territory.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 rebounded on Friday, taking its cue from the positive sentiment on Wall Street and heightened hopes for a September rate cut
• The index is holding above the 55-day moving average at 12,233, which has supported prices on a closing basis since June 3
• ECB Policymakers are reportedly leaning toward a deposit rate cut in September, with more government bond purchases likely. There are no major data releases scheduled from either Germany or the Euro-zone today.

UK100GBP Daily Chart

Source: OANDA fxTrade

• The UK100 index jumped the most in 5-1/2 weeks on Friday, buoyed by Wall Street and fighting talk on Brexit from the new PM Boris Johnson
• The index is holding above the rising 55-day moving average at 7,403, which has supported prices on a closing basis since June 6
• A UK government spokesman stated that PM Johnson had told Juncker the Withdrawal Agreement (WA) had been rejected three times by Parliament and would not pass in its current form. UK June house prices, as measured by the Nationwide index, are due to be released today. They rose 0.1% m/m in June. Perhaps lending support to house prices are expectations that mortgage approvals will rise to near 66,000 in the same month from 65,400 in May.

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