Wall Street retreats as Trump threatens more tariffs
Trump’s speech yesterday contained the usual rhetoric, but in the Q&A session, the US President said he would slap even bigger tariffs on China if they don’t sign a trade deal. The SPX and NAS100 indices have eased off from record highs yesterday. RBNZ surprised markets by keeping rates steady at 1.0%, with most analysts forecasting a 25 bps cut.
US30USD Daily Chart
- The US30 index has started negatively this morning after closing little changed yesterday.
- The 55-day moving average has risen to 26,896. The 23.6% Fibonacci retracement of the October 10 to November 7 rally is at 27,328.
- US consumer prices are expected to rise 0.3% m/m in October, an uptick from September’s flat reading. Fed’s Powell testifies today while his co-FOMC members Barkin and Kashkari are due to speak.
DE30EUR Daily Chart
- The Germany30 index rose for the first time in three days yesterday after the ZEW sentiment surveys showed some improvement.
- The index rose to the highest since January 2018 which helped lift the 55-day moving average to 12,487.
- Germany’s final reading for consumer prices was probably unchanged at +1.1% y/y in October, the latest survey of economists suggests.
CN50USD Daily Chart
- The China50 index fell for a third consecutive day yesterday as the escalating protests in Hong Kong hit sentiment.
- The index is falling toward the 55-day moving average at 13,853, which has supported prices since October 8.
- US President Trump said the two parties were “close” to a deal, without elaborating on what was already known. He added that, if a deal wasn’t signed, he wouldn’t hesitate to levy higher tariffs on China.