Wall Street pushes higher
US indices reached new highs yesterday after provisional readings for business activity either matched or beat expectations, adding to the positive sentiment from the US-China Phase 1 trade deal.
US30USD Daily Chart
The US30 index advanced for a fifth consecutive day yesterday, reaching record highs in the process. It’s opened slightly negative this morning after Boeing announced after hours it would suspend 737 MAX production in January
The 55-day moving average, which has supported prices since October 10, has risen to 27,388 while trendline support is around the 27,205 level
The flash Markit PMI for December was 52.5, matching forecasts, while the services PMI was 52.2, beating estimates of a 51.9 print. US industrial production is seen rebounding to +0.8% m/m in Nov from -0.8% in October.
DE30EUR Daily Chart
The Germany30 index climbed for a fourth day yesterday but failed to get above the Friday high, which was the highest since January 2018. It’s started in the red this morning
The 55-day moving average has advanced to 12,928 and has also supported prices since October 10
Markit’s December flash PMI readings for both Germany and the Euro-zone disappointed with both failing to match expectations. There are no major data releases scheduled for today but we can expect a speech from ECB’s Lane.
WTICOUSD Daily Chart
West Texas Intermediate (WTI) advanced for a third day yesterday amid hopes that the US-China trade truce might resurrect global activity and prompt future demand for oil
Prices hit the highest since September 17 on Friday and are currently holding below the 78.6% Fibonacci retracement of the September 16 – October 3 drop at $60.744
Weekly oil stockpiles data from the American Petroleum Institute (API) to December 13 are due today. Last week saw a surprise increase of 1.4 million barrels.
