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Daily Markets Broadcast 2018-12-12

Daily Markets Broadcast

2018-12-12

Equities mixed after a whippy session yesterday

US indices closed mixed after a volatile day yesterday with initial euphoria that China might soon announce various trade concessions being countered by US President Trump’s threat to shut down the government. Rumours the Conservative MPs had collected enough support to mount a leadership challenge on PM May also weighed on sentiment.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index closed lower yesterday despite a strong rally earlier in the session. Trade hopes fueled the rally, only to be halted by Trump’s threat to shut down government if border wall funding is not made available. Markets have started positively this morning after Trump said the release of Huawei’s CFO could be part of a broader trade deal with China
  • The Doji formation mentioned yesterday failed after the index closed lower. The 100-week moving average is at 23,477
  • US consumer prices are expected to rise 2.2% y/y in November, slower than October’s 2.5% rate, lending support to the notion that the Fed may pause its hiking cycle next year.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rose for a second straight day yesterday and looks poised to add to those gains today, given the bullish start by US futures
  • Doji reversal formation on the charts confirmed with yesterday’s higher close. The 55-day moving average is at 11,482
  • Euro-zone industrial production is expected to slow to +0.8% y/y in October from +0.9% the previous month.

UK100GBP Daily Chart

Source: OANDA fxTrade

  • UK shares advanced for a second day yesterday, despite all the political turmoil surrounding Brexit. The pound was the asset class to bear the brunt of negativity
  • Slow stochastics momentum indicator is above the oversold threshold and rising, which is a bullish signal. The 55-day moving average at 7,090 acts as the first resistance point
  • Sky News reported that Conservative MPs have gathered the 48 letters required to mount a vote of no confidence in PM May. Should it happen, it could stall the index’s current advance.

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