Wall Street extends gains on trade hopes
On an otherwise slow data and news day, continued hopes of some form of US-China trade deal was the driver that pushed Wall Street higher yesterday. The RBA is expected to hold rates at today’s meeting.
US30USD Daily Chart
The US30 index looks set to advance for a third straight day today, already pushing through yesterday’s high in early trading
The index has reached a record high this morning. The 55-day moving average has risen to 26,715
Today we see the US service sector PMIs for October. The ISM version is expected to improve to 53.4 from 52.6 while the final Markit reading is due following a provisional estimate of 51.0.
DE30EUR Daily Chart
The Germany30 index jumped the most in three weeks yesterday on continued optimism on the trade front
The index touched the highest since June 2018 with the 55-day moving average advancing to 12,319
Euro-zone producer prices is the only data event scheduled for today. They are expected to rise 0.1% m/m in September, a sharp turnaround from August’s -0.5% print.
WTICOUSD Daily Chart
West Texas Intermediate (WTI) advanced for a second day yesterday, reaching the highest since September 24 as trade optimism boosted the demand outlook
WTI tested, but failed to close above, the 200-day moving average at $57.19. That moving average has capped prices on a closing basis since September 26. The 50% retracement level of the September-October drop is at $57.22
Weekly stockpiles data to November 1 from the American Petroleum Institute are due today. Last week saw an increase in 592,000 barrels.
