Wall Street retreats as Trump threatens more tariffs
Trump’s speech yesterday contained the usual rhetoric, but in the Q&A session the US President said he would slap even bigger tariffs on China if they don’t sign a trade deal. The SPX500 and NAS100 indices have eased off from record highs yesterday. RBNZ surprised markets by keeping rates steady at 1.0%, with most analysts forecasting a 25 bps cut.
US30USD Daily Chart
The US30 index has started negatively this morning after closing little changed yesterday
The 55-day moving average has risen to 26,896. The 23.6% Fibonacci retracement of the October 10 to November 7 rally is at 27,328
US consumer prices are expected to rise 0.3% m/m in October, an uptick from September’s flat reading. Fed’s Powell testifies today while his co-FOMC members Barkin and Kashkari are due to speak.
DE30EUR Daily Chart
The Germany30 index rose for the first time in three days yesterday after the ZEW sentiment surveys showed some improvement
The index rose to the highest since January 2018 which helped lift the 55-day moving average to 12,487
Germany’s final reading for consumer prices was probably unchanged at +1.1% y/y in October, the latest survey of economists suggests.
CN50USD Daily Chart
The China50 index fell for a third consecutive day yesterday as the escalating protests in Hong Kong hit sentiment
The index is falling toward the 55-day moving average at 13,853, which has supported prices since October 8
US President Trump said the two parties were “close” to a deal, without elaborating on what was already known. He added that, if a deal wasn’t signed, he wouldn’t hesitate to levy higher tariffs on China.
