Wall Street rebounds on Huawei relief
Tech stocks rebounded yesterday after U.S. President Trump dialed back the blacklisting of Huawei, granting limited relief for consumers and carriers that do business with them. Other U.S. indices also tracked higher though the cloud of the trade talks slowed gains.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index snapped a two-day losing streak on the Huawei pause
- The index is sandwiched between 55-day moving average resistance at 26,013 and 100-day moving average support at 25,514
- The minutes of the last FOMC meeting will be released late in the U.S. session and will be scrutinised to learn the latest economic themes being considered by the Fed.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index also snapped a two-day losing streak after Euro-zone chip makers were given a temporary reprieve from the Huawei sanctions
- The 55-day moving average at 11,906 continues to support prices, as it has done on a closing basis since Feb. 8
- There are no major data releases from either the Euro-zone or Germany scheduled for today. ECB’s Draghi is scheduled to speak at 0730GMT.
CN50USD Daily Chart
Source: OANDA fxTrade
- The China50 index looks set to advance for a second day as global markets breathe a (maybe temporary) sigh of relief
- The index is trapped between 55-day moving average resistance at 13,150 and 100-day moving average support at 12,387. The 100-day average has supported prices since Jan. 22
- China’s ambassador to the U.S. has reiterated that China remains ready to hold trade talks and is ready to address trade imbalances with the U.S. by buying more U.S. goods and services.