Daily Markets Broadcast April 1, 2019
Wall Street indices higher on China data
A sharp rebound in China’s PMI data for March has given risk appetite a jolt in early trading in Asia as growth fears are partly allayed.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index looks set for a third straight day of gains as the rebound in the China PMIs builds hopes for the outlook for the Chinese economy, and hence global growth.
- The index looks set to test last month’s high, with the 2019 high above at 26,041
- Tonight we will see if the US manufacturing PMI sees a similar rebound. It’s expected to come in at 54.5 from 54.2 in February.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index looks set for a sixth daily advance in a row today after the China data buoys sentiment. The index had its best week in six weeks last week.
- The index is heading toward 200-day moving average resistance at 11,722. That average has capped prices on a closing basis since July 31.
- Both German and eurozone Markit manufacturing PMIs are not expected to differ from the flash readings of 44.7 and 47.6, respectively.
CN50USD Daily Chart
Source: OANDA fxTrade
- After posting the biggest daily gain in almost a month on Friday, the China50 index could advance further today after the rebound in the PMI numbers
- Prices touched a three-week high on Friday and could test the March 4 high of 13,312, which in turn was the highest since March 22, 2018
- Data released Sunday showed the manufacturing PMI hitting 50.5, the first time it crossed above the 50 contraction/expansion threshold in five months. The non-manufacturing PMI rebounded to 54.8 from 54.3.