Wall Street slides after softer economic data
US indices were slightly lower at the close of business yesterday after US retail sales came in below forecast in September. A Brexit deal appears to be almost there with reports that Ireland’s DUP may be willing to accept the proposed deal. The two-day EU summit on Brexit starts today.
US30USD Daily Chart
The US30 index has extended yesterday’s small losses in early trading this morning, setting up a second daily loss in a row
The index is back below the 78.6% Fibonacci retracement of the drop from September 12 to October 3 at 26,974. The 100-day moving average has risen to 26,529
US retail sales unexpectedly fell 0.3% m/m in September, the first contraction in five months. US housing starts are seen falling 8.6% in September after a 12.3% gain the previous month.
DE30EUR Daily Chart
The Germany30 index climbed to the highest level since August 8 last year, advancing for a second day, amid heightened Brexit deal hopes. The deal could be agreed at the EU summit that runs from today to Friday
The next major resistance point could be the July 2018 high of 12,890. The 100-day moving average is at 12,155 today
The only major data point today is construction output for August for the Euro-zone, which is seen falling 0.8% m/m after a 0.73% contraction in July.
WTICOUSD Daily Chart
Oil prices only registered a small gain yesterday to snap a two-day losing streak following a huge increase in inventories
West Texas Intermediate (WTI) is holding below the 55- and 100-day moving averages at $55.27 and $55.63 respectively
Weekly data from the American Petroleum Industries showed a surprising 10.5 million barrel increase in stockpiles in the week to October 11. That’s a sharp jump from last week’s 4.13 million barrel addition.
