They say no news is good news and at the moment this appears to be true regarding the US-China trade negotiations. Wall Street edged higher yesterday, touching fresh record highs, despite no news of progress. Hong Kong is facing a standoff between police and students at a university. The UK appears to be favouring Boris Johnson in the run-up to the December election.
US30USD Daily Chart
The US30 index touched a new record high yesterday but has opened in the red this morning.
The 55-day moving average has risen to 27,020 while trendline support could be found near the 27,245 level.
US housing starts and building permits data for October are due today, with starts probably rising 0.6% after a 9.4% decline in September.
DE30EUR Daily Chart
The Germany30 index remains stuck in a narrow band that has been in place for almost two weeks
The 55-day moving average has risen to 12,609. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960
The German Bundesbank’s monthly report warned that Q4 growth could stagnate, but with only a slight risk of a prolonged recession. (Note: The first estimate of Q3 growth was +0.1% q/q). There are no major data releases scheduled for today.
CN50USD Daily Chart
The China50 index is struggling for traction despite a positive outlook for a trade deal as the ongoing Hong Kong unrest and the rising threat of violent intervention caps risk appetite.
The index is sitting on the 55-day moving average at 13,883, which has supported prices on a closing basis since October 8.
The Hong Kong government has ordered schools and colleges to be closed for the sixth day and has cautioned that District Council elections scheduled for this Sunday may be canceled..