Wall Street rises on better China data
US indices shrugged off a below-forecast Chicago PMI reading and instead focused on the better data out of China. The RBA is expected to cut rates again to 0.75% at today’s meeting. China celebrates its 70th anniversary today, so tensions in Hong Kong could be heightened after the weekend escalation in protests.
US30USD Daily Chart
The US30 index rallied for the first time in three days yesterday after China’s manufacturing PMI rose to 49.8 in September, the highest reading since April. In contrast, the Chicago PMI slumped to 47.1
The 55-day moving average at 26,592 has held on a closing basis since September 5
The US ISM purchasing managers index is expected to rise to 50.0 in September from 49.1 the previous month. That would halt five months of slippage to the lowest since 2016.
DE30EUR Daily Chart
The Germany30 index looks poised to advance for a fifth consecutive day today after reaching the highest in a week yesterday
The 100-day moving average is at 12,132 and has supported prices since September 6. The 55-day moving average is just below at 12,068
Final readings for Markit’s PMI readings for Germany and the Euro-zone are due today. Flash estimates were 41.4 and 45.6, respectively.
WTICOUSD Daily Chart
Crude oil prices have fallen for the past five days, dropping back to the level before the attacks on the Saudi production facilities took place two weeks ago
WTI crude prices closed below the 55-day moving average at $56.05 yesterday for the first time since September 13
Weekly oil stockpiles data to September 27 from the American Petroleum Institute are due today. Last week saw an addition of 1.4 million barrels to inventories, the most in six weeks.
