Wall Street upbeat on trade talks, Fed cut hopes
Wall Street indices advanced yesterday after US President Trump said US-China talks were ahead of schedule, while hopes for a Fed rate cut later this week added fuel to the gains, which saw the SPX500 index hit record highs. The EU extended the Brexit deadline to the end of the year and Boris Johnson will (again) attempt to get a December election passed by Parliament today.
SPX500USD Daily Chart
The SPX500 index rose for a second day in a row yesterday, hitting a new record high on positive trade talk comments and Fed rate cut hopes
The 55-day moving average is above the 100-day moving average today for the first time in two weeks
US pending home sales are seen rising 0.5% m/m in September, a slower pace than the +1.6% printed in August.
DE30EUR Daily Chart
The Germany30 index powered ahead for a fourth consecutive day yesterday, boosted by sentiment on Wall Street and the fact that the possibility of a no-deal Brexit receded
The index rose to the highest in more than four months as the 55-day moving average at 12,192 closes in on the 100-day moving average at 12,215
There are no economic data releases scheduled for both Germany and the Euro-zone today. Bundesbank president Weidmann is due to speak.
XAU/USD Daily Chart
The better sentiment on Wall Street has taken its toll on gold prices as they fell yesterday for the first time in five days
Gold failed to close above the 55-day moving average on Friday after spiking up to the highest level since October 3. That moving average has capped prices on a closing basis since October 9
US President Trump said yesterday that the US-China trade talks are ahead of schedule and he expects the Phase One deal to be signed at the APEC meeting in Chile next month.
