Wall Street steadies with trade tariff threat finely balanced
US indices steadied at lower levels yesterday as Friday’s tariff threat deadline nears. China has threatened retaliation if the tariffs go ahead but at least they are still at the negotiating table. Crude oil held above $60 per barrel.
US30USD Daily Chart
The US30 index clawed back early losses to snap a two-day losing streak yesterday after posting the biggest one-day loss in four months on Tuesday
The index is hovering below the 55-day moving average at 26,055 with the 200-day moving average at 25,400
The US trade deficit is expected to widen to $50.2 billion in March from $49.4 billion in February. Fed’s Powell is scheduled to speak at 12:30GMT.
DE30EUR Daily Chart
The Germany30 index snapped a two-day losing streak after industrial production data out of Germany beat estimates and echoed the positive shift in factory orders
The index is still holding above the 23.6% Fibonacci retracement of the rally since December at 11,938
There are no major German or Euro-zone economic releases scheduled for today. ECB’s Draghi said he will not accept defeat regarding the inflation target, nor will he change it.
WTICOUSD Daily Chart
WTI rose yesterday as weekly official US inventory data showed a surprise drop. The rally has been tempered today somewhat after Saudi Arabia announced it would fill all the orders for June that it has, including from those countries that used to buy from Iran
Oil held above the 200-day moving average at 60.55, as it has on a closing basis since April 1. The 55-day moving average looks poised to cross above the 200-day moving average this week
EIA crude stocks fell by 3.96 million barrels in the week to May 3, data released yesterday showed.
