Wall Street higher in holiday-shortened session
Wall Street extended recent gains into the Independence Day holiday yesterday, with the US30 index hitting a record high. Trump’s chief economic adviser Kudlow said US-China trade talks to resume by phone in the coming week.
US30USD Daily Chart
The US30 index rallied for a fifth day yesterday and has extended those gains to a record high of 26,984 this morning
the 100-day moving average at 26,015 and the 55-day average at 26,086 are on a convergence path, with a crossover likely by the end of next week
Mixed results from the June services PMIs released last night. The Markit version improved to 51.5 from 50.9 but the ISM equivalent fell to 55.1 from 56.9. There are no data releases today due to the Independence Day holiday.
DE30EUR Daily Chart
The Germany30 index rallied to an 11-month high yesterday, encouraged by the climb to record levels on Wall Street and better-than-expected PMI data
The index closed above the 78.6% Fibonacci retracement of the May-December drop last year at 12,581 for the first time since August 9
Germany’s June Markit services PMI improved to 55.8 from 55.4 while the Euro-zone reading rose to 53.6 from 52.9. Euro-zone retail sales are expected to rise 0.3% m/m in May after a 0.4% decline in April.
CN50USD Daily Chart
The China50 index fell for a second consecutive day yesterday despite the gains on Wall Street
The index has held above the 55-day moving average at 13,163 since June 18
The Office of the US Trade Representative confirmed that the two sides were in the process of scheduling a principal-level phone call with Chinese officials for next week. Trump again accused China and Europe of currency manipulation.
