Wall Street futures firmer on hopes a trade deal in sight

Weekend speculation that a US-China trade deal may be close to materializing lifted US indices in early trading this morning. China holds its national Party Congress this week, which could be a good platform to announce a deal.

US30USD Daily Chart

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The US30 index rebounded on Friday, and has extended those gains in early trading this morning, on speculation US and China are near a deal to end most tariffs

Resistance at the November high of 26,249 remains intact. Support may be found at the 200-day moving average at 25,109

The Wall Street Journal reported that the US could lift most, or even all, of its tariffs on Chinese goods with a summit between US President Trump and Chinese leader Xi Jinping possibly happening later this month. There are no data releases of note today.

DE30EUR Daily Chart

The Germany30 index touched a four-month high on Friday as economic data matched, or beat, expectations

The index may have eyes on the 200-day moving average, which is at 11,855 today

The Euro-zone final Markit manufacturing PMI reading for February came in at 49.3, better than estimates of 49.2, while the region’s January unemployment rate was a below-forecast 7.8%, unchanged from December. There are no major economic data releases scheduled for today.

CN50USD Daily Chart

China shares surged to the highest since April 11 on Friday, and could extend those gains at the open today

The 61.8% Fibonacci retracement of the January 2018 to January 2019 drop is at 13,109 and could be tested today

China’s National Party Congress is being held this week where policies will be decided for this year. A solution to the trade tariff standoff would be a welcome reprieve amid a slowing economy.

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