US indices decline on tariff, growth fears
Wall Street indices fell sharply into the close yesterday as investors mulled the lack of progress in the US-China trade talks and its implications for global growth. China avoids being labeled a currency manipulator in the US semi-annual review. Bank of Canada is seen keeping rates unchanged at 1.75% at today’s meeting.
US30USD Daily Chart
The US30 index snapped a two-day losing streak and fell the most in two weeks yesterday amid growth concerns
The index closed below the 200-day moving average at 25,418 for the first time since May 13. The next support level could be the 38.2% Fibonacci retracement of the December to May rally at 24,668
The Richmond Fed manufacturing index is seen improving to 6 in May from 3 in April
DE30EUR Daily Chart
The Germany30 index looks poised for a second daily decline in early trading this morning. Angela Merkel is reportedly reconsidering her successor after poor results in last weekend’s elections
The index is testing 55-day moving average support at 11,948, which has supported prices on a closing basis since February 8
Germany’s unemployment rate is seen unchanged at 4.9% in May, according to the latest poll, but the economy is expected to have lost 8,000 jobs in the month.
CN50USD Daily Chart
The China50 index advanced for a third straight day yesterday, but gains were modest
The index is tracking the 100-day moving average higher, which is currently at 12,502. This average has supported prices on a closing basis since January 23
The fact that China was not labeled a currency manipulator in the US Treasury’s semi-annual review could give shares an additional boost.
