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Daily Markets Broadcast 2019-05-14

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Daily Markets Broadcast

2019-05-14

Wall Street slumps as China retaliates

China went ahead with retaliatory tariffs on US goods yesterday, despite Twitter warnings from US President Trump to resist doing so. US indices tumbled, safe haven assets including US Treasuries benefited while oil fell.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index posted the biggest one-day decline so far this year, falling to the lowest level since February 12, amid news of the tariff war escalation
  • The index closed below the 100-day moving average at 25,307 for the first time since January 29 yesterday. The 38.2% Fibonacci retracement of the December-May rally is at 24,758
  • Trump confirmed that he will meet China’s President Xi at the G-20 summit in June. Fed’s George is scheduled to speak today.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell the most in more than five months yesterday, following cues from Wall Street
  • The index has breached the 23.6% Fibonacci retracement of the rally since December at 11,938 and is now testing the 55-day moving average at 11,458
  • The EU is reportedly finalizing plans to target US imports if President Trump goes ahead with proposed tariffs on European car imports by May 18. German April CPI data are due today and seen steady at +1% m/m.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • Crude oil prices fell yesterday as the tariff war between the US and China took a turn for the worst, with China’s latest retaliation to US tariffs. This dealt prospects for global growth a severe blow and hence the potential future demand for oil
  • WTI is currently testing the 55-day moving average at $60.75. This moving average has supported prices on a closing basis since January 17. The 200-day moving average lurks beneath at $60.43
  • Weekly crude stocks for the American Petroleum Institute are due today. Last week saw a surprise addition of 2.8 million barrels.

 

 

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