Wall Street consolidates recent gains
There wasn’t much data/news to impact markets yesterday, with President Trump’s State of the Union address having little for the markets to latch on to. Most of Asia is still celebrating the Lunar New year, so activity may be light.
US30USD Daily Chart
The US30 index touched its highest in two months yesterday, but pared gains to close slightly in the red
The index faces resistance at the 25,768 level, which is 78.6% Fibonacci retracement of the October-December drop
US President Trump confirmed his negotiating team is heading to Beijing next week to continue trade talks. Meanwhile the US trade deficit narrowed to the least in five months in November.
DE30EUR Daily Chart
The Germany30 index snapped a two-day winning streak yesterday after German factory orders continued the recent spate of weaker European data
The index appears to be capped near-term by the 100-day moving average at 11,360
Having seen the weak factory orders data, today it’s the turn of German industrial output, which could surprise to the downside and add more pressure to the index.
WTICOUSD Daily Chart
West Texas Intermediate rebounded from the week’s lows after the latest inventory data from EIA
WTI’s two-month rally appears to have stalled, at least temporarily, at the 38.2% Fibonacci retracement level of the October-December drop at $55.54
EIA data showed an increase in inventories of 1.26 million barrels in the week to February 1, the third weekly gain in a row.
