Wall Street falls as Fed hopes dialed back
US indices gave back early gains to close in the red on Friday after Fed’s Bullard dented hopes of a 50bps rate cut next week. Weekend protest in Hong Kong turned violent again, which could hurt Hong Kong and China shares. Tensions remain high in the Gulf.
US30USD Daily Chart
The US30 index slumped to the lowest close in more than a week on Friday, despite upbeat earnings from Microsoft
The 100-day moving average at 26,155 and the 55-day average at 26,222 continue to track each other higher
St. Louis Fed President James Bullard said a 50-basis-point cut would be overdone and may cause markets to sell off. There are no US data releases scheduled for today.
The Germany30 index fell for a third straight day on Friday amid rising speculation that Italy may be headed for early elections
The index is hovering above the 55-day moving average at 12,197, which has supported prices on a closing basis since June 3
Germany’s producer prices fell more than expected in June, declining 0.4% m/m versus a forecast of -0.2%. That was the weakest reading in six months. There are no major data releases from either Germany or the Euro-zone today.
Crude oil prices snapped a five-day losing streak on Friday after news emerged that Iran had seized a British oil tanker in the Straits of Hormuz, heightening geopolitical tensions in the region
WTI is extending the rebound from one-month lows to a second day in early trading this morning. Prices are rising toward the 200-day moving average at $57.27
The American Petroleum Institute releases crude oil stockpiles data as at July 19 tomorrow. Last week saw a drawdown of 1.4 million barrels from inventories.