Wall Street shudders as it digests Huawei developments
US indices fell yesterday, with the tech-heavy NAS100 index under-performing on the back of Huawei’s blacklisting by the US as chip suppliers were impacted. Australian shares rallied after the Conservative coalition won the election.
US30USD Daily Chart
The US30 index fell for a second consecutive day yesterday on Huawei developments. China stated it would respond accordingly
The index is holding above the 100-day moving average at 25,487 wile the 55-day moving average caps for now at 26,009
US existing home sales probably rose 2.6% m/m in April, according to the latest poll of economists, rebounding from March’s 4.9% decline.
DE30EUR Daily Chart
The Germany30 index fell the most in a week yesterday as European chip makers came under pressure following the Huawei developments
The 55-day moving average at 11,895 continues to support prices, as it has done on a closing basis since February 8
There are no major data releases from either the Euro-zone or Germany scheduled for today. German factory gate prices rose 0.5% m/m in April, faster than expected, data released yesterday showed.
AU200AUD Monthly Chart
Australian shares rose 1.22% yesterday in response to the Conservative coalition winning the weekend election. The coalition’s election manifesto included tax cut promises
The index hit the highest level since December 2007 with the September 2007 high of 6.596 the next possible resistance point
RBA Governor Lowe is scheduled to speak at 0310mGMT today and his comments will be scrutinised for dovish leanings, or not, given the prospect of tax cuts boosting the economy. A more hawkish bias could stem the AU200 index’s current rally.