Wall Street rebounds after early sell-off
Early trading was bearish on Wall Street as Brexit and UK politics clouded global sentiment. Sentiment shifted on the day after strong retail sales data and positive press reports on US-China trade talks. The US30 index posted its first up-day in five days. UK shares were surprisingly resilient given the political headlines.
US30USD Daily Chart
The US30 index snapped a four-day losing streak after earlier touching the lowest level this month
The index failed to close below the 61.8% Fibonacci retracement support level of the Oct29 to Nov8 rally at 24,900, despite spiking lower. The index has since regained a foothold above the 200-day moving average at 25,094
October retail sales topped estimates, rising 0.8% m/m versus 0.5% expected. US industrial production is expected to rise 0.2% m/m in October, slower than September’s 0.3% gain.
DE30EUR Daily Chart
The Germany30 index echoed the turnaround in sentiment on Wall Street, overcoming early Brexit-related pressure. Italy and EU still trading comments regarding the 2019 budget plan
The index hit a 2-1/2 week low before rebounding. The 55-day moving average at 11,843 would act as the first upward resistance point
Euro-zone October consumer prices are due today, and are expected to hold steady at +2.2% y/y.
UK100GBP Daily Chart
The UK100 index rallied yesterday for the first time in six days, despite all the Brexit and UK political issues
The index is rising toward the 55-day moving average at 7,224. This average has capped prices on a closing basis since August 10
Growing risk that UK PM May could face a vote of no confidence. It would need 48 members to sign a protest letter in order to trigger the vote.
