Wall Street extends gains on trade hopes

Wall Street rallied yesterday after US President Trump said he was flexible on a summit with China’s leadership, open to delaying the event until a deal had been struck. The NAS100 index touched a 5-month high. UK lawmakers voted against exiting Europe with no Brexit deal in place.

NAS100USD Daily Chart

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The NAS100 index rose for a fourth consecutive day yesterday, touching the highest since October 17. That’s the longest winning streak since early-January

The index tested the 78.6% Fibonacci retracement of the October-December drop at 7,297.7. At current levels, the index is facing its biggest weekly gain since November last year

January’s new home sales are expected to fall 0.9% from a month earlier, according to latest surveys. That would be the weakest print in three months.

DE30EUR Daily Chart

The Germany30 index rose yesterday following better-than-expected economic data while also riding on the coat tails of Wall Street’s gains

The index is still sandwiched between resistance at the 200-day moving average at 11,800 and rising trendline support near 11,355

Euro-zone industrial production rose 1.4%m/m in January, beating economists’ estimates of a 1.0% gain. German consumer prices are seen rising 0.5% m/m in February, the same pace as January.

WTICOUSD Daily Chart

Crude oil prices advanced to the highest in four months yesterday after data showed a surprise drawdown on inventories in the week to March 8

Prices regained the $58 handle for the first time since November 16. The 100-week moving average is at $58.38 while the 50% retracement level of the October-December drop is at $59.653

Data from EIA showed oil stockpiles falling by 3.86 million barrels in the week to March 8. This echoes Tuesday’s numbers from API to March 4, which saw a drawdown of 2.58 million barrels.

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