Wall Street rallies as shutdown ends
Friday’s announcement that the longest ever US government shutdown would end, at least temporarily, supported stock markets as the economic drag dwindles. China officials head to Washington ahead of trade negotiations later this week. Australia markets are closed for a public holiday.
US30USD Daily Chart
President Trump agreed to reopen the US government for three weeks on Friday, though the issue of funding for the Mexico wall still remain. The US30 index hit the highest since December 12 last Friday
The index is nearing the convergence of the 200- and 100-day moving averages at 24,270 and 24,983, respectively
Despite the climb-down on the shutdown, Trump’s State of the Union address is unlikely to go ahead tomorrow. House Speaker Pelosi said she will work with Trump to find a new date.
DE30EUR Daily Chart
The Germany30 index advanced to the highest in almost eight weeks on Friday, led by positive sentiment in Asia. Gains were tempered a tad by another set of weak German data, this time the IFO surveys for January
The 100-day moving average at 11,426 could be the next resistance hurdle for the index to overcome
January’s German IFO readings came in below forecast on Friday, with the expectations index slumping to 94.2, the weakest since 2012. The data empasised the ECB’s call that downside risks to the economy have increased.
CN50USD Daily Chart
Chinese shares posted their biggest one-day gain in a week on Friday amid hopes that the less-aggressive stance on the government shutdown could filter through in to trade negotiations and promote a deal
The China50 index hit the highest since December 5 on Friday, and is approaching the 200-day moving average at 11,463, which has held since April 13
Lower level Chinese official head to Washington to carry on trade discussions ahead of the “big guns’ meeting on January 30-31.
