Stocks slide on Hong Kong confrontation
The US Hong Kong Democracy bill has now passed both the Senate and House and could be sent to US President Trump as early as today for either signing or vetoing. This could put the Phase 1 trade talks in jeopardy with one news outlet suggesting it could be delayed to 2020.
US30USD Daily Chart
The US30 index is facing its third down day in a row today after touching the lowest level in a week yesterday
The 55-day moving average has risen to 27,063 while trendline support could be found near the 27,250 level
US existing home sales are seen rising 1.4% m/m in October, according to the latest survey of economists, a strong rebound from September’s -2.2%. Last night’s FOMC minutes had nothing new for markets. Fed’s Mester and Kashkari are scheduled to speak today.
DE30EUR Daily Chart
The Germany30 index fell to the lowest since November 4 yesterday and looks set to extend the recent decline to a fourth day
The 55-day moving average has risen to 12,647. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960
Euro-zone consumer confidence probably improved to -7.3 in November from -7.6 last month, according to the latest survey. We can expect speeches from ECB’s Mersch and De Guindos along with the minutes of the last ECB meeting today.
CN50USD Daily Chart
The China50 index fell the most in more than a week yesterday as the US-China trade negotiations morphed into an exchange of barbs over the Hong Kong situation
The index still managed to close above the 55-day moving average at 13,894 yesterday, as it has done since October 8
US President Trump is expected to sign the Hong Kong Human Rights and Democracy Act into law today, which would require annual reviews of Hong Kong’s special status under US law and sanction officials deemed responsible for human rights abuses. China has already said it would retaliate if the law was passed.
