Daily Markets Broadcast

Wall Street dumps on trade uncertainty, data

US indices slumped yesterday amid a lack of noticeable progress in the trade talks as the December 15 deadline for the next round of tariffs nears. Weak US PMI data added to the pressure as most indices fell the most in about two months. The RBA is expected to keep rates unchanged at today’s policy meeting.

US30USD Daily Chart

The US30 index fell for a third straight day yesterday, dropping the most since October 2 to hit the lowest level in ten days

The 55-day moving average has risen to 27,200, edging higher toward possible trendline support around the 27,230 level

The ISM manufacturing PMI fell to 48.1 in November, confounding analysts’ expectations of an improvement to 49.2. The are no tier-1 data releases scheduled for today.

DE30EUR Daily Chart

The Germany30 index slumped to the biggest daily loss in two months yesterday amid weak sentiment on Wall Street and as the leadership contest in Germany’s SPD party raised fears of an early general election

The index traded below the 23.6% Fibonacci retracement of the rally from October 3 to November 12 at 12,960 for the first time since November 4. The 55-day moving average has risen to 12,771

Yesterday’s final readings for the Markit manufacturing PMIs for both Germany and the Euro-zone suggested some stabilization after being revised higher from the flash estimates. Today’s data calendar has only Euro-zone producer prices for October and a speech from ECB’s Coeure on tap.

AU200AUD Daily Chart

The Australia200 index has fallen to the lowest level in 11 days in early trading this morning ahead of the RBA rate decision

The index is headed toward the 55-day moving average at 6,702, which has supported prices on a closing basis since October 10

The RBA is widely expected to keep its benchmark rate unchanged at 0.75%, according to the latest survey of economists. The last meeting was a closer call than expected, the minutes showed, with a lengthier discussion about cutting rates. There is a small chance of a surprise cut today.