Wall Street slides as trade talks resume
US indices closed slightly lower after a volatile session yesterday as the US and China sat down for the first face-to-face trade talks in two months. EU’s Juncker said that he was prepared to remove the so-called backstop from a withdrawal agreement, so long as all of the EU’s objectives are met.
US30USD Daily Chart
The US30 index edged lower for the first time in three days yesterday
The 55-day moving average has edged up to 26,613, with prices trading above it since September 5
A Trump adviser said the President is prepared to increase pressure on China if trade deal is not agreed to soon. It’s a slow finish to the week on the data front, with the only item on the calendar a speech from Fed’s Rosengren.
The Germany30 index has started positively this morning, possibly setting up a third consecutive daily gain
The 100-day moving average is at 12,115 and has supported prices since September 6. The 55-day moving average is just below at 12,078
The provisional reading for the Euro-zone’s consumer confidence is expected to slip to 7.0 in September from 7.1 last month, according to the latest survey of economists.
The UK100 index saw wild swings yesterday before closing little changed amid rising hopes for progress toward a Brexit deal
The index has so far failed to overcome resistance at the convergence of the 100- and 55-day moving averages at 7,345.2 and 7,348.7 respectively. The 55-day moving average has capped prices on a closing basis since August 1
The Bank of England held rates at yesterday’s meeting, as expected. The Bank releases its Quarterly Bulletin today. Progress toward a Brexit deal seems possible after Juncker’s comments on the back-stop situation, which could help sentiment.