Wall Street drops on Brexit drag
Boris Johnson failed to get his Brexit bill timetable passed in Parliament yesterday and this acted as a drag on Wall Street. It also raised expectations that a General Election may be called before the end of the year. Earnings reports were mixed, with McDonald’s disappointing, while rumours circulated that Hong Kong’s Carrie Lam might be replaced.
US30USD Daily Chart
The US30 index is facing a second day of declines with further losses posted early this morning
The index is edging toward the 100-day moving average at 26,593, which has supported prices for almost two weeks
There are no major US data releases scheduled for today. The house price index is expected to show a gain of 0.3% m/m in August following a 1.7% advance in July.
DE30EUR Daily Chart
The Germany30 index fell yesterday amid Brexit developments, with it becoming more likely the UK will request an extension to the October 31 deadline. EU’s Tusk has recommended the EU accept such a request
The index facing its second daily decline in a row as a result of the Brexit hangover. The 100-day moving average has risen to 12,188
Euro-zone consumer confidence is seen slipping to -6.7 in October from -6.5 last month. There are no German data releases scheduled for today.
WTICOUSD Daily Chart
West Texas Intermediate rallied for the first time in three days yesterday after weekly inventory data showed a smaller build
WTI is rising toward the 55-day moving average at $55.295, which has capped prices since September 30
Weekly stockpiles data from the American Petroleum Institute showed inventories rose 4.45 million barrels as at October 18, a smaller gain than the previous week’s 10.5 million barrels.
