Wall Street weakens on trade deal uncertainty
US indices softened yesterday as investors fretted about whether US and China could strike a deal before the March 1 deadline. This came about as Trump said he would not meet Xi before the end of the month.
Source: OANDA fxTrade
- The US30 index fell for a second day yesterday amid concerns about whether a US-China trade deal can be brokered before March 1
- The index is sitting just above the 200-day moving average at 25,014, with the 100-day moving average below at 24,887
- There are no major data releases scheduled for today. Fed’s Bullard said US job market is performing well, but links to inflation are weaker.
Source: OANDA fxTrade
- The Germany30 index fell the most in two months yesterday as German data continued to disappoint and the ECB downgraded growth forecasts
- The index fell to test the 55-day moving average support at 11,014
- Germany’s trade surplus is seen narrowing to EUR18.4b in December from EUR19.0b, with imports seen rising 0.2% m/m.
Source: OANDA fxTrade
- Hong Kong returns after a three-day holiday and the index is expected to play catch up with the slippage seen on Wall Street during that time
- The 200-day moving average at 27,800 could give way. The 55-day moving average is at 26,447
- A perceived lack of progress in the US-China trade talks will likely weigh on the index. When asked whether he will meet China’s Xi this month, US President Trump emphatically declared “no”.