US indices snap winning streak

US equity markets were closed yesterday, but index futures retreated following the release of China’s Q4 GDP data. PM May’s Plan B appears to focus on delaying Brexit to get better concessions from the EU.

US30USD Daily Chart

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The US30 index declined for the first time in five days yesterday as markets digested the slower China growth and less-positive headlines on trade negotiations

The index is facing a lot of convergent resistance points: 24,932 is the 61.8% Fibonacci retracement of the October-December drop; 24,961 is the 55-week moving average while 24,975 is the 200-day moving average

Wall Street reopens after yesterday’s bank holiday, with December existing home sales on the data slate. They are expected to fall 1.2% m/m, according to the latest survey of economists.

DE30EUR Daily Chart

The Germany30 index snapped a four-day winning streak yesterday amid continued uncertainty surrounding the way forward on Brexit

The 55-day moving average at 11,078 could lend some technical support after it was breached on Friday

German ZEW economic sentiment is expected to show further deterioration in January, sliding to -18.4 from -17.5.

West Texas Intermediate edged higher in thin trading yesterday, touching the highest level in almost seven weeks as investors focused on future supply cuts

Prices are approaching the 38.2% Fibonacci retracement of the October to December drop at $55.539

The API weekly crude oil stocks data as at January 18 are due tomorrow. Lat week saw a drawdown of 560,000 barrels, the third consecutive weekly reduction.

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