Wall Street weakens on trade deal uncertainty
US indices softened yesterday as investors fretted about whether US and China could strike a deal before the March 1 deadline. This came about as Trump said he would not meet Xi before the end of the month.
US30USD Daily Chart
The US30 index fell for a second day yesterday amid concerns about whether a US-China trade deal can be brokered before March 1
The index is sitting just above the 200-day moving average at 25,014, with the 100-day moving average below at 24,887
There are no major data releases scheduled for today. Fed’s Bullard said US job market is performing well, but links to inflation are weaker.
DE30EUR Daily Chart
The Germany30 index fell the most in two months yesterday as German data continued to disappoint and the ECB downgraded growth forecasts
The index fell to test the 55-day moving average support at 11,014
Germany’s trade surplus is seen narrowing to EUR18.4b in December from EUR19.0b, with imports seen rising 0.2% m/m.
HK33HKD Daily Chart
Hong Kong returns after a three-day holiday and the index is expected to play catch up with the slippage seen on Wall Street during that time
The 200-day moving average at 27,800 could give way. The 55-day moving average is at 26,447
A perceived lack of progress in the US-China trade talks will likely weigh on the index. When asked whether he will meet China’s Xi this month, US President Trump emphatically declared “no”.
