Stocks rise as minutes show a patient Fed
The minutes of the December FOMC meeting highlighted dovish discussions among Fed members and a patient view to further rate hikes in 2019. The three-day China-US trade talks finished amicably and with progress, though no actual deal was announced.
US30USD Daily Chart
The US30 index advanced for a fourth day yesterday though gains were tempered amid concerns about the ongoing US government shutdown
The index closed above the 50% retracement level of the December drop at 23,760 yesterday. The 61.8% Fibonacci retracement is at 24,308 and the 55-day moving average at 24,440
Fedspeak continues today with Powell, Bullard, Evans and Clarida on tap. They will no doubt echo the dovish tone of the December minutes.
DE30EUR Daily Chart
The Germany30 index has started negatively today, snapping a two-day advance that saw the index hit a four-week high
The index appears to be stalling ahead of the 55-day moving average, which is at 11,120 and has capped prices on a closing basis since August 29
No German data are scheduled for today. The minutes of the last ECB meeting will be released.
WTICOUSD Daily Chart
West Texas Intermediate has open in the red this morning and looks set for the first down-day in eight days. The commodity touched the highest in nearly four weeks yesterday
The 55-day moving average at $53.85 acts as the first resistance point and has capped prices since October 17
EIA crude oil stockpiles saw a drawdown of 1.68m barrels in the week to January 4, according to data released yesterday. It was below economists’ forecasts of a 2.8m barrel decline.
