Stocks fall as US-China tensions rise
The US slapped visa restrictions on some Chinese officials, stepping up pressure tactics ahead of trade talks with China after blacklisting eight Chinese tech companies on Monday. Trade talks are set to resume tomorrow amid rumours that the Chinese delegation has cut short their stay by one day.
US30USD Daily Chart
The US30 index fell for a second day yesterday amid rising pessimism about the looming US-China trade talks
The index is heading toward the 200-day moving average, which is at 25,978 today
US producer prices came in below forecast in September, falling 0.3% m/m which gives greater credence to a Fed rate cut at the end of this month. There are no major data releases scheduled for today but Fed Chairman Powell is due to speak again.
DE30EUR Daily Chart
The Germany30 index snapped a three-day rising streak yesterday, dropping the most in a week, as it appears no progress is being made in Brexit negotiations. UK PM Johnson has blamed Germany’s Merkel for making a Brexit deal effectively impossible
The index remains trapped between the the 100-day moving average at 12,120 and the 200-day moving average at 11,835
Angela Merkel reportedly told Boris Johnson that Northern Ireland must remain part of the EU’s customs union, to which Johnson is diametrically opposed. There are no data releases for either Germany or the Euro-zone scheduled for today.
WTICOUSD Daily Chart
Crude oil prices look poised to decline for a third straight day despite increased geopolitical risks from Ecuador, where a production facility was attacked
West Texas Intermediate (WTI) is heading toward the June and August lows around $50.50
Weekly inventory data from the Energy Information Administration is expected to show another addition to reserves of 2.6 million barrels to October 4. That would be the fourth weekly increase in a row.
