Wall Street slides on weak earnings reports
US indices extended declines to a second day yesterday after earnings reports from the banking sector disappointed. Oil prices slid despite a drawdown of inventories while gold surged on a weaker US dollar.
US30USD Daily Chart
The US30 index fell the most in three weeks yesterday, extended the recent slide from record highs to a second day. The index has traded even lower this morning
The 100-day moving average at 26,131 and the 55-day average at 26,194 continue to track each other higher
Analysts are anticipating a strong rebound in the Philadelphia Fed manufacturing survey for this month. Estimates suggest a 5.0 reading from 0.3 in June.
The Germany30 index gave back most of the gains from the previous two days yesterday and has extended those losses in early trading this morning
The index is testing the 55-day moving average support at 12,202
ECB’s Coeure said that the Bank will act in event of adverse contingencies with all available tools to ensure inflation moves toward target (ie easing is coming). There are no major data releases scheduled for today.
Gold surged the most in a week yesterday as the US dollar weakened and noted investor Raymond Dalio recommended adding gold to one’s portfolio as it “would be both risk-reducing and return-enhancing”
The precious metal is trading withing the confines of an unfolding triangle formation, waiting for a breakout in either direction
Gold was also given a boost after Iran said it could shut the Straits of Hormuz, but doesn’t want to.