Wall Street loses momentum
US indices could not extend Friday’s gains yesterday despite news the US is unlikely to impose the next set of tariffs on December 15, according to the US Agriculture Secretary. UK polls continued to show the Conservative Party on track to win a majority in Thursday’s election.
US30USD Daily Chart
The US30 index retreated for the first time in four days as investors took a breather to re-evaluate direction
The index remains above the convergence area of the 55-day moving average at 27,270 and trendline support around the 27,205 level
US third quarter nonfarm productivity is expected to decline 0.1%, a slower pace than the -0.3% recorded in Q2.
The Germany30 index gave back all of Friday’s gains yesterday on a lack of fresh inputs and weakness on Wall Street
The index is still above the 55-day moving average at 12,840, and has been since October 10
ZEW surveys for December for both Germany and the Euro-zone are due today. German economic sentiment is seen rising to zero from -2.1 while the Euro-zone’s reading is expected to deteriorate to -17.0 from -1.0.
UK shares were steady on Monday after posting the biggest weekly loss in nine weeks last week. A firmer pound prevented more extreme gains as the latest poll showed the Conservatives increasing its lead over Labour by two percentage points
The UK100 index has been below the 55-day moving average, which closed at 7,281 yesterday, for a week
UK industrial production is seen rising 0.2% m/m in October, a swing from September’s 0.3% contraction. The goods trade deficit probably narrowed to £11.65 billion from £12.54 billion, the latest survey of economists suggests.