Markets retreat, awaiting response to Saudi attack
Wall Street fell yesterday in the aftermath of the weekend attack on Saudi Arabia’s biggest oil processing facility, raising geopolitical tensions. There seems to be little progress in Brexit talks between Johnson and Juncker. Copper falls on weak China data.
US30USD Daily Chart
The US30 index snapped an eight day winning streak yesterday as the transport sector led declines after oil prices spiked higher
The 55-day moving average has risen to 26,603, with prices trading above it since September 5
US industrial production is expected to rise 0.2% m/m in August, which would be the first positive reading in three months. July’s reading was -0.2%.
The Germany30 index fell for the first time in nine days yesterday as rising oil prices stoked fears of pipeline inflation
The 100-day moving average is at 12,114 and has supported prices since September 6. The 55-day moving average is just below at 12,088
German economic sentiment is seen dropping to -15.0 in September, according to forecasts for the index published by ZEW. August’s reading was -13.5. In contrast, the Euro-zone equivalent is expected to improve to -32.2 from -43.6.
Copper prices fell the most in more than four months yesterday after China industrial production data came in at the lowest level in more than 15 years
Future demand expectations for the industrial metal were scaled back after the weak data, pulling copper prices from seven week highs. The 55-day moving average is at 2.6269
China’s industrial production rose a mere 4.4% y/y in August, the weakest reading since February 2002, and has seen slower growth for two months in a row.