Wall Street rallies on earnings
Strong earnings from the consumer sector gave US indices a lift yesterday, and those gains were maintained after FOMC minutes suggested the last rate cut was mid-cycle insurance against low inflation. The Kansas Fed’s Jackson Hole gathering kicks off today.
US30USD Daily Chart
The US30 index recouped all of the previous day’s losses, and more, yesterday
The index is testing the 100-day moving average at 26,293 this morning, which has capped prices on a closing basis since August 13
The flash manufacturing PMI from Markit for August is expected to improve to 50.5 from 50.4 in July, the latest survey suggests. FOMC minutes showed a divided committee, with 2 members preferring a 50 bps cut instead of the 25 bps delivered.
The Germany30 index jumped the most in four weeks yesterday following soothing words on Brexit solutions from Germany’s Merkel and UK’s Johnson
The index touched the highest in eight days yesterday and is rising toward the 100-day moving average at 12,117
Germany’s flash manufacturing PMI from Markit is seen deteriorating to 43.0 in August from 43.2 last month. That would be the 15th consecutive month in contraction territory.
Crude oil prices jumped to the highest in more than a week yesterday after EIA inventory data showed a larger-than-expected drawdown, before closing lower on the day
West Texas Intermediate is currently sitting on the 200-day moving average at $56.03. The 55-day moving average is above the 200-day moving average this morning, the first time since August 1
EIA crude oil stockpiles as at August 16 were published yesterday and showed a drawdown of 2.73 million barrels, more than the 1.89 million barrels analysts had expected.