Wall Street falls on fears of US-China deal stalemate
Rumours circulated yesterday that the lack of detailed progress in this week’s US-China negotiations implies a deeper impasse. Oil prices continued their slide on demand concerns.
US30USD Daily Chart
The US30 index fell for a second consecutive day yesterday on trade negotiation concerns. Energy stocks weakened as crude oil crashed more than 3%
Rising 55-day moving average support is at 26,039 today. The index fell through 26,264 support putting a double-top in place with a measured objective of 25,862
The US economy added 185,000 jobs in April, according to the latest survey of economists. A below-forecast number would put additional pressure on Wall Street. The unemployment rate is seen steady at 3.8%.
DE30EUR Daily Chart
The Germany30 index snapped a three-day winning streak yesterday though losses were limited by an uptick in the Markit manufacturing PMI in April. March retail sales also come in above forecast
The index is testing the 61.8% Fibonacci retracement of the 2018 fall at 12,332
German retail sales fell a less-than-expected 0.2% m/m in March following a 0.5% gain the previous month. The Markit manufacturing PMI was revised higher to 44.4 from 44.1.
WTICOUSD Daily Chart
WTI fell 3.2% yesterday as increasing inventories raise concerns about slack demand. Meanwhile supply concerns eased as the Iran sanction waivers expired.
WTI is approaching the 200-day moving average at 60.716, which has supported prices since April 2
Data from the EIA released Wednesday showed an addition of 9.93 million barrels to inventories, the biggest increase since November.
