Wall Street sinks amid lack of progress in trade talks
Wall Street indices extended recent losses yesterday with a lack of new developments in the US-China trade negotiations raising fears of a global slowdown. Oil prices collapsed as a result.
US30USD Daily Chart
The US30 index fell the most in 10 days yesterday with trade war troubles dominating sentiment. Energy stocks came under pressure as oil prices tumbled
The index closed below the 100-day moving average at 25,539 for the first time in 10 days. The 200-day moving average is at 25,416 today
US durable goods orders are expected to fall 2.0% in April following a 2.8% increase in March.
DE30EUR Daily Chart
The Germany30 index had its worst down day since May 13 yesterday following some data misses for both Germany and the Euro-zone. Weakness on Wall Street didn’t help either
Support at the 55-day moving average at 11,921 remains intact and has supported prices on a closing basis since February 8
The Markit manufacturing PMI reading for Germany for May fell to 44.3, a three-month low, while the Euro-zone reading fell to 47.7. Both were below economists’ estimates. There are no data releases scheduled for today.
WTICOUSD Daily Chart
WTI prices fell the most in six months yesterday as the ongoing US-China trade conflict raised questions about global economic growth in the future
Prices fell to the lowest in 10 weeks, testing the 100-day moving average at 67.938 for the first time since March 8. Fibonacci support may be found at the 57.20 level
Weak PMI readings across Europe added to the negative sentiment for global oil demand. An easing in US-Iran tensions also eased supply concerns.
