U.S. indices powered ahead on Friday, reaching new record highs in most cases, with expectations for a Fed rate cut this month still high despite hotter inflation data last week. China releases Q2 GDP data today. Japan markets are closed for a public holiday.
US30USD Daily Chart
- The US30 index advanced for a third straight day Friday, posting the biggest daily gain in three weeks
- The 100-day moving average at 26,095 and the 55-day average at 26,149 are gradually converging and could crossover by the end of the month
- U.S. producer prices rose more than expected in June, posting a 0.1% m/m and 1.7% y/y increase, which echoed the slightly firmer consumer price indices that were released earlier in the week. There are no major data releases scheduled for today.
DE30EUR Daily Chart
- The Germany30 index fell for a seventh straight day yesterday, equaling the longest losing streak since October last year, despite better-than-expected economic data
- The index touched the lowest in two weeks and is gravitating toward the 55-day moving average at 12,201
- Euro-zone industrial production rose 0.9% m/m in May, beating estimates of a 0.2% gain. There are no major economic data releases scheduled for today.
CN50USD Daily Chart
- The China50 index rebounded from two-week lows on Friday, buoyed by the positive sentiment on Wall Street
- The 55-day moving average at 13,142 moved below the 100-day moving average at 13,146 for the first time since February 26. This is often interpreted as a medium-term bearish signal
- The Chinese economy probably grew 6.2% y/y in the second quarter, according to the latest survey of economists, slower than Q1’s 6.4% expansion. An even lower number would increase pressure on the authorities to introduce larger stimulus measures for the economy to combat the weakening impact of the trade war with the US.