Wall Street slumbers with lack of trade talk progress
Wall Street ended mixed yesterday, rebounding from intra-day lows for a nondescript close. US top trade negotiator said China buying more US goods is not enough, need to see structural changes. China’s PMI readings fall in February.
US30USD Daily Chart
The US30 index rebounded from weekly lows yesterday to close almost flat. US trade negotiator said China not doing enough in trade talks, need to see changes with regard to intellectual property and technology transfer
Resistance at the November high of 26,249 remains intact as the slow stochastics momentum indicator edges lower. Support may be found at the 200-day moving average at 25,096
US releases delayed data for Q4 GDP growth today. Estimates suggest a slowdown to +2.3% y/y from +3.4% in Q3.
DE30EUR Daily Chart
The Germany30 index snapped a three-day winning streak yesterday, falling by the most in two weeks, as M3 money supply growth missed estimates in December
The index is struggling to overcome the December high at 11,571. Trendline support may be found near the 11,298 level
Slowing growth in the money supply is raising concerns that a lack of availability of credit could exacerbate the current economic slowdown. There are no data releases of note today.
CN50USD Monthly Chart
The China50 index continues to consolidate Monday’s strong rally and closed 2.3% below that day’s peak yesterday
The index is sitting at the 50% retracement level of the drop from January 2018 to January 2019, and looks on track to post the second monthly advance in a row
China’s official manufacturing PMI data weakened in February, falling to 49.2 from 49.5. Surveys had expected an unchanged reading. That’s the third straight month below the expansion/contraction threshold of 50. The non-manufacturing PMI eased to 54.3 from 54.7, also below forecast.
