Wall Street retreats as methodology shift boosts virus cases
US indices recovered some ground after an early sell-off yesterday, but still finished in the red, as China changed the methodology for reporting CoVid-19 cases which caused a spike in totals. More pressure came after the Fed announced it will scale back its liquidity injections, reducing the size of its overnight repo operations and using smaller term operations. UK’s Chancellor resigned which gave the pound a boost while oil prices continued the recent rebound.
US30USD Daily Chart
The US30 index declined for the first time in four days, dropping 0.4% on the day after recouping some of the earlier losses
The 55-day moving average has risen to at 28,661 while the 100-day moving average is at 27,986
US retail sales probably rose 0.3% m/m in January, the same pace as December, according to the latest survey of economists.
The Germany30 index retreated from the record high since 2003 yesterday, declining for the first time in four days
The index remains above the 55-day moving average at 13,333 while the 100-day average provides longer-term support below at 13,061
The German economy probably expanded 0.1% q/q in Q4, the same pace as Q3, according to the latest survey of economists. The Euro-zone economy as a whole also likely grew 0.1% q/q.
West Texas Intermediate touched the highest level in a week but eased back into the close yesterday.
Technical resistance on the upside could be found at the convergence of the 100- and 200-day moving averages at $56.35 and $56.53, respectively
Crude stockpiles data from the Energy Information Authority (EIA) to February 7 saw a jump in inventories by 7.46 million barrels, way more than the almost three million barrels analysts had expected. That’s acting as a drag, making the crude oil rebound very slow.