Wall Street stalls as trade deal hits a snag

Most US indices struggled to rally yesterday as reports circulated that the US-China Phase 1 deal had hit a snag. Discrepancies on China’s agricultural purchases were among the issues. Powell’s testimony on Capitol Hill had nothing new for markets. The Australian jobs report for October disappointed.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index outperformed other US indices as Disney reported strong take-up numbers for its new streaming service

• The index hit a new record high yesterday. The 55-day moving average has risen to 26,924.

• US producer prices are expected to rise 0.3% m/m in October, an uptick from September’s -0.3% reading. Fed’s Evans, Clarida and Bullard are scheduled to speak, with Chairman Powell delivering Day 2 of his testimony.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index declined yesterday despite better-than-expected economic data

• The index touched the lowest in a week as the 55-day moving average rose to 12,516

• The Euro-zone’s economic growth is expected to maintain its recent pace in Q3 with a +0.2% q/q reading expected. Speeches from ECB’s De Guindos and Lane are scheduled for today.

AU200AUD Daily Chart

Source: OANDA fxTrade

• The Australia200 index rebounded off intra-day lows as the jobs report for October missed estimates. The weaker report raised hopes of more RBA rate cuts which supported the index

• The index touched the lowest in a week before rebounding. The 55-day moving average has risen to 6,664 and has been above the 100-day moving average since November 7

• The Australian economy lost 19,000 jobs in October, 10,700 of those in the full-time category. The unemployment rate rose to 5.3% from 5.2%, even with a lower participation rate of 66.0%.