Daily Markets Broadcast 2019-09-24

Daily Markets Broadcast

2019-09-24

Wall Street steady, awaiting trade developments

US indices edged higher yesterday in slow trading, encouraged by an improvement in flash US PMI data. In contrast, European flash PMIs were a disappointment. China’s Vice Premier Liu He is to visit the US in the next two weeks for trade talks, which is earlier than expected, and has lifted prices this morning.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index rebounded from near two-week lows to close higher for the first time in three days yesterday
• The 55-day moving average at 26,619 continues to support prices. It has held on a closing basis since September 5
• The flash Markit manufacturing PMI for September jumped to 51.0, better than the 50.3 analysts had expected. US house prices are expected to have risen 0.3% m/m in July, an acceleration from June’s +0.2%.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index fell to the lowest level since September 10 yesterday after disappointing flash PMI numbers from both Germany and the Euro-zone
• The 100-day moving average is at 12,118 and has supported prices since September 6. The 55-day moving average is just below at 12,073
• Markit’s flash German manufacturing PMI fell to 41.4 in September, the worst reading in more than a decade. The Euro-zone reading slumped to 45.6, also the worst since 2009. Today we see the IFO sentiment surveys for September, with the expectations index seen rising to 91.8 from 91.3 the previous month.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index didn’t respond well to yesterday’s soothing commentaries from both the US and China about the progress in the trade talks
• The index fell for a second straight day yesterday, dropping to the lowest level since September 4. The 55-day moving average at 13,509 has supported prices since August 30
• China’s Vice Premier Liu He is heading to Washington in the next two weeks for trade talks, according to US Treasury Secretary Mnuchin. That’s earlier than the mid-October schedule talked about yesterday. This could give the index a lift at today’s open.

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