Wall Street rebounds on technical buying
Lower global rates across the board was an initial worry for equities yesterday, but once US yields moved below the S&P dividend yield it prompted some technical buying across indices. Oil prices rose on a larger-than-expected drop in inventories while the chances of the UK leaving Europe without a deal increased as PM Boris Johnson’s request to suspend Parliament was granted by The Queen.
US30USD Daily Chart
The US30 index recovered from a weak opening yesterday amid some technical buying across indices
The index bounced off the 200-day moving average at 25,599. That moving average has supported prices on a closing basis for two weeks
US Q2 economic growth is expected to be revised lower to +2.0% annualised from +2.1% at the first estimate, according to the latest survey of economists. Pending home sales are seen returning a flat reading in July, down from the +2.8% recorded in June.
DE30EUR Daily Chart
The Germany30 index could fall for a second straight day today after snapping a two-day rising streak yesterday. Developments on the Brexit front pulled the index back from a positive start yesterday
The index is sitting on the 200-day moving average at 11,669. So far, the index is still in positive territory for the week, which would be the first weekly gains in five weeks
The Euro-zone economic sentiment indicator is seen sliding to 102.3 in August from 102.7 last month.That would be the weakest reading since February 2015.
UK100GBP Daily Chart
The UK100 index posted the biggest one-day gain in a week yesterday after the “prorogue” surprise
The index is rising toward the 200-day moving average at 7,195, which has capped prices on a closing basis since August 21
UK PM Boris Johnson suspended Parliament from no later than September 12 to October 14, a move which is seen as an attempt to stop lawmakers from introducing laws to prevent a “no-deal” Brexit. There are no major UK data releases scheduled for today.
