Wall Street retreats as additional tariffs imposed
Wall Street looks set to give back Friday’s surprising gains today, with early trading pushing US indices into the red. Trump hiked tariff rates to 25% on $200 billion worth of Chinese goods, considers hikes on another $325 billion. China has yet to respond with the retaliatory measures it has promised.
US30USD Daily Chart
The US30 index has already given back Friday’s gains in early trading, as the uncertainty surrounding US-China trade negotiations impacts
The index is still above the 23.6% Fibonacci retracement of the December-May rally at 25,486, with the 200-day moving average at 25,403 below
Despite the latest tariff increase, China has invited US trade representative Lighthizer and Trade Secretary Mnuchin to China to continue trade talks. There are no data releases scheduled for today.
DE30EUR Daily Chart
The Germany30 index also looks poised to give back Friday’s gains, trading in the red so far today
The index is still holding above the 23.6% Fibonacci retracement of the rally since December at 11,938
Germany’s trade surplus jumped to EUR20 billion in March, the highest in 10 months, beating economists’ estimates of a decline to EUR18.2 billion. There are no German or Euro-zone data releases scheduled for today.
CN50USD Daily Chart
The China50 index snapped a four-day losing streak on Friday, despite Trump’s imposition of additional tariffs on Chinese goods. Looking at the moves in other indices, those gains could well be eroded at the open today
The index rebounded from a two-month low, with the convergence area of the 100-day moving average at 12,224 and the 50% retracement level of the 2019 rally at 12,198 remaining unbreached.
China is due to publish Foreign Direct Investment data for April today. Investment flows grew 6.5% y/y year-to-date in March.
