Wall Street takes the virus in its stride
US indices rebounded from the worst losses of the year yesterday, helped along by strong economic data. It was a broader risk-on day, with safe havens slipping and oil prices rising. The Federal Reserve holds its first FOMC meeting of 2020 later today.
US30USD Daily Chart
The US30 index halted a two-day slide yesterday, shrugging off the worsening news on the virus and boosted by the strongest Richmond Fed manufacturing index in 16 months
The 55-day moving average at 28,397 remains intact and has supported prices since October 10
The FOMC is expected to report an unchanged policy at today’s meeting, focusing on the data flow going forward. Pending home sales are seen rising 0.5% m/m in December, a slower pace than November’s +1.2%.
DE30EUR Daily Chart
The Germany30 index rebounded from three-week lows to finish higher yesterday, echoing the positive mood on Wall Street
The index has regained the 55-day moving average at 13,282 after opening below it for the first time since October 9
German Gfk consumer confidence readings for February are seen unchanged at 9.6. Import prices probably rose 0.3% m/m in December, according to the latest survey of economists.
XAU/USD Daily Chart
Gold prices slid for the first time in five days yesterday as the market coped with the worsening Wuhan virus crisis
The 55-day moving average is at 1,505.42 and has supported prices since December 23
The latest coronavirus update out of China shows 5,974 confirmed cases, up from 4,515 yesterday, with the death toll rising to 132.
