Daily Markets Broadcast July 2, 2019Stocks close off highs
US indices retreated from intra-day highs at the close yesterday, but not before the SPX500 index hit record highs. OPEC appears on the verge of extending production cuts for nine months. The Reserve Bank of Australia is expected to cut rates at a second consecutive meeting to bring the benchmark rate to 1.0%.
US30USD Daily Chart
- The US30 pared early gains yesterday after failing to overcome last month’s high. The index closed higher for the third consecutive day.
- The index probably still has eyes on the June high at 26.913 and the October high of 26,940.
- The June ISM manufacturing PMI came in better than expected, but was still lower than May. There are no major data releases today but Fed’s Williams is scheduled to speak.
DE30EUR Daily Chart
- The Germany30 index touched an 11-month high yesterday despite softer economic data releases.
- The 78.6% Fibonacci retracement of the May-December drop last year at 12,581 was tested but held on a closing basis. The August 2018 high is at 12,599.
- June manufacturing PMI data came in below forecast in the eurozone, Germany, France, Italy and the UK. Today’s releases include German retail sales for May, which are seen rebounding to +0.5% m/m from -2.0%.
WTICOUSD Daily Chart
- Crude Oil prices rose yesterday after OPEC seemed set to agree on an extension of current production cuts for another nine months. The decision still needs to be ratified by non-OPEC allies today.
- WTI is testing the 55-day moving average at $59.11, which has held on a closing basis since May 21.
- Weekly crude oil stockpiles data from the American Petroleum Institute are due today. Last week saw a drawdown of 7.55 million barrels.