Wall Street index futures traded marginally higher during the U.S. Memorial Day holiday, ignoring comments from U.S. President Trump that he was not yet ready to do a trade deal with China. Alibaba (NYSE:BABA) weighs a second listing in Hong Kong.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index has edged higher for a third straight day in early trading this morning, despite negative comments from Trump about a China trade deal
- The 200-day moving average at 25,419 is still acting as a support level. Prices are currently tracking the 100-day moving average higher, which is at 25,612 today
- It’s another slow day on the data front with the Dallas Fed manufacturing index for May the only item of note.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index looks set to advance for a third straight day today as the market digests EU election results that were less anti-EU than feared
- Support at the 55-day moving average at 11,941 remains intact and has supported prices on a closing basis since Feb. 8
- Euro-zone industrial confidence is expected to decline to -4.3 in May from -4.1 in April. That would be the lowest reading since August 2016.
CN50USD Daily Chart
Source: OANDA fxTrade
- The China50 index staged a modest rebound yesterday but may come under pressure today after Trump’s overnight comments regarding the trade talks. However, news that Alibaba is considering a $20b share listing in Hong Kong may lend support
- The index is above the 100-day moving average at 12,481. This average has supported prices on a closing basis since Jan. 23
- China’s industry ministry has acknowledged that US tariff increases will lead to higher enterprise costs, lower competitiveness and fewer orders, but the impact on the manufacturing sector is manageable.