US indices reverse early gains

Wall Street started positively but gave back those gains amid weakness across the retail sector. We had another heavy-handed tweet from US President Trump that China “must” do a trade deal, or suffer higher tariffs. The PBOC is widely expected to drop its Prime Lending Rate today.

US30USD Daily Chart

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The US30 index touched a new record high early yesterday but then posted the biggest one-day decline this month

The 55-day moving average has risen to 27,045 while trendline support could be found near the 27,250 level

Fed’s Williams (moderate, voter) and Rosengren (hawk, dissenter) both said economy is in a very good place. The minutes of the last FOMC meeting will be released late tonight (early Thursday, Singapore time).

DE30EUR Daily Chart

The Germany30 index touched the highest since January yesterday but closed little changed as sentiment soured on Wall Street

The 55-day moving average has risen to 12,631. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960

Germany’s producer prices probably fell 0.4% y/y in October, according to the latest survey of economists. ECB’s Lane is scheduled to speak late in the day.

WTICOUSD Daily Chart

West Texas Intermediate fell the most since the end of September yesterday as weekly stockpiles data showed a large increase and rumours circulated that Russia is not keen on cutting its production

WTI has opened below the 55-day moving average at $55.76 today for the first time since November 1

Weekly inventory data from the American Petroleum Institute showed an increase of 5.95 million barrels in reserves, a sharp reversal from last week’s 500,000 barrel drawdown. Data from the Energy Information Administration are due today and are expected to show an increase of 1.06 million barrels following a 2.2 million barrel gain last week.

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