Daily Markets Broadcast 2019-03-25

Daily Markets Broadcast

2019-03-25

Wall Street drops on slowdown fears

Weak sets of data out of Europe and the US stoked fears of a faster, deeper economic slowdown and pressured Wall Street on Friday. EU granted a Brexit extension to the UK as long as they approve PM May’s deal this week.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell the most since January 3 on Friday amid weaker flash PMI readings for March
  • The index is slipping toward the 55-day moving average at 25,230 with the 200-day moving average below at 25,164
  • The Markit flash manufacturing PMI for March fell to 52.5, weakest since August 2017, and below economists’ estimates of 53.6. Today we have speeches from Fed’s Evans and Harker.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index suffered the biggest daily drop since February 7 on Friday as the flash manufacturing PMI fell to the lowest since 2012 in March
  • The index is testing the 55-day moving average at 11,297, which has supported prices on a closing basis since February 8
  • German IFO surveys for March are due today, with the expectations index seen improving to 94.4 from 93.8. Given the poor PMI readings, a lower-than-expected print could happen.

UK100GBP Daily Chart

Source: OANDA fxTrade

  • The UK100 index tumbled by the most in nine months on Friday as data and Brexit uncertainties pressured
  • The index breached the 200-day moving average at 7,239 on Friday. The 55-day moving average is at 7,072
  • The EU granted a short-term extension to the UK’s Brexit to May 22 IF last week’s rejected deal from PM May is approved. This seems unlikely, in which case the extension would only apply to April 12.