Wall Street steadies in holiday-subdued activity
Wall Street index futures traded marginally higher during the US Memorial Day holiday, ignoring comments from US President Trump that he was not yet ready to do a trade deal with China. Alibaba weighs a second listing in Hong Kong.
US30USD Daily Chart
The US30 index has edged higher for a third straight day in early trading this morning, despite negative comments from Trump about a China trade deal
The 200-day moving average at 25,419 is still acting as a support level. Prices are currently tracking the 100-day moving average higher, which is at 25,612 today
It’s another slow day on the data front with the Dallas Fed manufacturing index for May the only item of note.
DE30EUR Daily Chart
The Germany30 index looks set to advance for a third straight day today as the market digests EU election results that were less anti-EU than feared
Support at the 55-day moving average at 11,941 remains intact and has supported prices on a closing basis since February 8
Euro-zone industrial confidence is expected to decline to -4.3 in May from -4.1 in April. That would be the lowest reading since August 2016.
CN50USD Daily Chart
The China50 index staged a modest rebound yesterday but may come under pressure today after Trump’s overnight comments regarding the trade talks. However, news that Alibaba is considering a $20b share listing in Hong Kong may lend support
The index is above the 100-day moving average at 12,481. This average has supported prices on a closing basis since January 23
China’s industry ministry has acknowledged that US tariff increases will lead to higher enterprise costs, lower competitiveness and fewer orders, but the impact on the manufacturing sector is manageable.
