Sentiment improves in global equity markets
US equities rebounded on Monday, with the battered tech sector leading the rebound while consumer-focused counters were lifted by reports of heavy spending during Black Friday and Cyber Monday shopping season. The apparent willingness from Italy to be flexible regarding its 2019 budget plans helped European indices. China shares could be pressured by comments yesterday by Trump that the next set of tariffs on Chinese imports will likely go ahead.
US30USD Daily Chart
The US30 index snapped a two-day losing streak with the biggest one-day advance in 2-1/2 weeks
The index is still holding above the October low of 24,066. Daily momentum indicators have adopted a more positive tone
On the data front, S&P/Case-Shiller house prices for September are due today. They’re expected to show a smaller gain of +5.3% y/y in September. We also have speeches from a trio of Fed members: Bostic, Evans and George. Let’s see if there is more caution about headwinds for the US economy.
DE30EUR Daily Chart
The Germany30 index advanced for a second day yesterday, buoyed by a perceived softening by Italy on its budget stance. Yesterday’s gains were the most in a month
The index is heading toward the 200-week moving average at 11,511 while the 55-day moving average is at 11,720
No economic data of note today. ECB’s Mersch is scheduled to speak later.
CN50USD Daily Chart
China shares managed to post gains yesterday, the first in three days, but could struggle today following Trump’s latest tariff comments
The 55- and 100-day moving averages at 11,253 and 11,307, respectively, could act as resistance points
Local newspaper China Daily reports that the government is planning additional measures to support the private sector.
