Daily Markets Broadcast 2019-12-17

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Daily Markets Broadcast

2019-12-17

Wall Street pushes higher

US indices reached new highs yesterday after provisional readings for business activity either matched or beat expectations, adding to the positive sentiment from the US-China Phase 1 trade deal.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index advanced for a fifth consecutive day yesterday, reaching record highs in the process. It’s opened slightly negative this morning after Boeing announced after hours it would suspend 737 MAX production in January
  • The 55-day moving average, which has supported prices since October 10, has risen to 27,388 while trendline support is around the 27,205 level
  • The flash Markit PMI for December was 52.5, matching forecasts, while the services PMI was 52.2, beating estimates of a 51.9 print. US industrial production is seen rebounding to +0.8% m/m in Nov from -0.8% in October.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index climbed for a fourth day yesterday but failed to get above the Friday high, which was the highest since January 2018. It’s started in the red this morning
  • The 55-day moving average has advanced to 12,928 and has also supported prices since October 10
  • Markit’s December flash PMI readings for both Germany and the Euro-zone disappointed with both failing to match expectations. There are no major data releases scheduled for today but we can expect a speech from ECB’s Lane.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate (WTI) advanced for a third day yesterday amid hopes that the US-China trade truce might resurrect global activity and prompt future demand for oil
  • Prices hit the highest since September 17 on Friday and are currently holding below the 78.6% Fibonacci retracement of the September 16 – October 3 drop at $60.744
  • Weekly oil stockpiles data from the American Petroleum Institute (API) to December 13 are due today. Last week saw a surprise increase of 1.4 million barrels.