Wall Street rebounds as trade pendulum swings to positive
US President Trump’s comments that China wants to make a trade deal “very badly” lifted risk sentiment yesterday, reversing early losses in the Asian session.
US30USD Daily Chart
The US30 index rebounded from 11-day lows to finish in the black yesterday
The index managed to rise back above the 200-day moving average at 25,597
Today’s data slate is mostly second-tier, with June’s house price index and the Richmond Fed manufacturing index for August.
DE30EUR Daily Chart
The Germany30 index also rebounded from the lowest level since August 16 on the better outlook for trade talks
The index is hovering around the 200-day moving average at 11,666
The first revision to Q2 German GDP is due today. Analysts are not expecting any change to the first reading of -0.1% q/q and 0% y/y.
CN50USD Daily Chart
The China 50 index snapped a two-day losing streak yesterday following the sharp turnaround in risk appetite
The index held above the 100-day moving average at 13,289, which has supported prices since August 19
The main focus for China data this week will be the manufacturing PMI numbers for August. Economists are expecting a slight weakening to 49.6 from 49.7.
