Wall Street slides on persistent growth fears
US indices fell for a second day yesterday as the flight from equities in to safe-haven bonds continued. The moves pushed 10-year US benchmark yields below 2.25% for the first time since September 2017.
US30USD Daily Chart
The US30 index touched the lowest since February 8 yesterday, falling for a second straight day, but closed off the intraday lows
The index is falling toward the 38.2% Fibonacci retracement of the December to May rally at 24,668
Annual growth in the US economy is expected to slow to +3.1% in Q1, according to the latest survey of economists. That compares with 3.2% growth in Q4.
The Germany30 index fell for a second consecutive day yesterday, touching the lowest since April 3 at one point
The index closed below the 55-day moving average at 11,946 for the first time since February 8. The 100-day moving average at 11,630 is above the 200-day moving average at 11,629 for the first time since May last year
It’s a public holiday in Germany today so liquidity may be diminished. There are no data releases scheduled.
Crude oil prices spiked lower to 11-week lows yesterday amid growth/demand concerns, but recovered in to the close to finish marginally in the red.
The index is holding above the 38.2% Fibonacci retracement of the December-April rally at $57.20 on a closing basis
EIA crude oil inventories are expected to show a drawdown of 800,000 barrels in the week to May 24, according to the latest poll of analysts. That would be the first reduction in three weeks.