Bank earnings drag Wall Street lower

Whereas the first day of the bank reporting season was strong, the second day was not, so Wall Street gave back some of Friday’s gains yesterday. Despite this, positive risk appetite remains intact.

US30USD Daily Chart

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The US30 index slipped after touching a 10-day high yesterday following disappointing earnings from Citigroup and Goldmans

The rising 55-day moving average support is at 25,768 today

US industrial production is expected to improve slightly in March, expanding 0.2% m/m after a flat reading in February. Capacity utilisation is seen steady at 79.1%.

DE30EUR Daily Chart

The Germany30 index looks set to advance for a fifth straight day today, supported by comments from the ECB saying growth in Q1 may have seen a pickup

The index touched the highest since October 8 this morning but is still below the 61.8% Fibonacci retracement level of the May-December drop at 12,089

ZEW surveys from Germany and the Euro-zone are due today, with both expected to rebound back into positive territory in April.

XAU/USD Daily Chart

Gold looks on track to post the fourth consecutive daily loss today as risk appetite remains buoyant despite yesterday’s setback on the bank earnings front

XAU/USD has opened today’s session below the 100-day moving average at 1,288.47 for the first time since November 15 and looks set to test trendline support around 1,285

China’s Foreign Direct Investment data for March could be released today, which rose 5.5% y/y last month. If it echoes the surge in new loans seen in March, then gold could feel more pressure.

 

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