Wall Street stalls as trade deal hits a snag
Most US indices struggled to rally yesterday as reports circulated that the US-China Phase 1 deal had hit a snag. Discrepancies on China’s agricultural purchases were among the issues. Powell’s testimony on Capitol Hill had nothing new for markets. The Australian jobs report for October disappointed.
US30USD Daily Chart
The US30 index outperformed other US indices as Disney reported strong take-up numbers for its new streaming service
The index hit a new record high yesterday. The 55-day moving average has risen to 26,924.
US producer prices are expected to rise 0.3% m/m in October, an uptick from September’s -0.3% reading. Fed’s Evans, Clarida and Bullard are scheduled to speak, with Chairman Powell delivering Day 2 of his testimony.
DE30EUR Daily Chart
The Germany30 index declined yesterday despite better-than-expected economic data
The index touched the lowest in a week as the 55-day moving average rose to 12,516
The Euro-zone’s economic growth is expected to maintain its recent pace in Q3 with a +0.2% q/q reading expected. Speeches from ECB’s De Guindos and Lane are scheduled for today.
AU200AUD Daily Chart
The Australia200 index rebounded off intra-day lows as the jobs report for October missed estimates. The weaker report raised hopes of more RBA rate cuts which supported the index
The index touched the lowest in a week before rebounding. The 55-day moving average has risen to 6,664 and has been above the 100-day moving average since November 7
The Australian economy lost 19,000 jobs in October, 10,700 of those in the full-time category. The unemployment rate rose to 5.3% from 5.2%, even with a lower participation rate of 66.0%.
