Wall Street dips on Trump’s talk tweets
US indices fell but pared deeper losses into the close yesterday after US President Trump tweeted that China was not following through on commitments to buy more US agricultural products, just as the trade talks got underway in Shanghai after a three month hiatus. Brexit concerns are heightened after Boris Johnson’s tough stance on a Brexit deal. China’s PMI data and the Fed rate meeting are due today.
US30USD Daily Chart
The US30 index snapped a two-day rising streak yesterday but recovered from three-day lows to close only slightly in the red
The 55-day moving average at 26,408 continues to accelerate away from the 100-day moving average at 26,264
The US FOMC meets later today and is widely expected to announce a 25bps cut to the benchmark rate (early Thursday, Singapore time). More interesting will be any forward guidance on the future path of rates and adjustments to the policy statement. Buckle up, it’s likely to be volatile.
DE30EUR Daily Chart
The Germany30 index slumped the most in eight months amid Brexit concerns as the new British PM appears to be taking a hardline stance on any Brexit deal
The index is testing support at the 100-day moving average at 12,093, which has supported prices on a closing basis since February 14
German retail sales probably rose 0.5% m/m in June, according to the latest survey of economists. That almost covers May’s 0.6% decline and would be the strongest growth rate in four months.
CN50USD Daily Chart
The ChinaA50 index snapped a five-day rising streak yesterday as trade negotiations between the US and China got underway again
The 55-day moving average at 13,245 is poised to cross above the 100-day moving average at 13,253 for the first time in nearly three weeks
China’s manufacturing PMI is expected to edge higher to 49.6 in July from 49.4 the previous month, according to recent surveys. That would be the third month in a row it has stayed below the 50 expansion/contraction threshold.
