Wall Street hits new highs as Phase One trade deal signed
After three years of sometimes acrimonious and bitter confrontation, US and China yesterday signed the first phase of what could be a broader trade deal.
US30USD Daily Chart
The US30 index hit new highs yesterday after the trade deal was signed, closing above the 29,000 for the first time ever
The 55-day moving average, which has supported prices since October 10, has moved up to 28,127
US retail sales probably 0.3% m/m in December, a slight improvement from November’s +0.2%. The Philadelphia Fed manufacturing index for January is expected to jump to 3.9 from 0.3 last month. We can also expect a speech from Fed’s Bowman.
DE30EUR Daily Chart
The Germany30 index slid for a second day yesterday after Euro-zone data disappointed
The index is still above the 55-day moving average at 13,210, which has supported prices on a closing basis since October 8
Euro-zone industrial production fell 1.5% y/y in November, worse than the -1.1% expected. Today we have the final German CPI numbers for December on tap. Prices are not expected to be adjusted from the initial +0.5% m/m estimate.
CN50USD Daily Chart
The China50 index looks set to stem a two-day losing streak today after the phase one trade deal was finally signed off
The 55-day moving average has moved up to 14,090 and has supported prices since December 12
China’s new loans data for December may be released today. Forecasts suggest a 1.19 trillion yuan increase in loans, slightly less than the 1.39 trillion recorded in November.
