Additional stimulus measures out of China aimed at combating slowing growth pushed US indices higher yesterday. PM May’s Brexit deal was wholeheartedly rejected, as expected, and her government will likely face a vote of no confidence in Parliament later today.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index touched the highest level in almost a month yesterday, lifted my better expectations for global growth following the announcement of more stimulus measures by China
- The 61.8% Fibonacci retracement of December’s drop is at 24,308, while the 55-day moving average has edged lower to 24,393
- Fed’s Kashkari is due to speak later today ahead of the release of the Fed’s Beige Book, a report on the current state of the US economy in the 12 Federal Reserve districts.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index snapped a two-day losing streak yesterday, closing slightly higher after a volatile trading session
- The 55-day moving average at 11,087 remains a significant hurdle to cross in the near term. The index has traded below it since September 28
- Consumer prices in Germany for December are expected to show a similar increase to November, rising 0.1% m/m.
CN50USD Daily Chart
Source: OANDA fxTrade
- China Shares popped higher into the close yesterday following the stimulus announcement. China will continue to cut taxes, especially for small businesses and the manufacturing sector, according to a statement distributed to reporters at a PBOC press conference yesterday
- The 55- and 100-day moving averages could act as the next resistance points at 10,892 and 11,071, respectively
- China has slowly been announcing economic stimulus measures to support the economy, ranging from liquidity measures by the PBOC, enhancing access to cheaper financing for the private sector and tax cuts. However, we are yet to see any concrete signs that these measures have fully worked through to the economy yet.