Wall Street steadies after a strong week
US indices consolidated a bullish week on Friday, though the ongoing US government shutdown capped sentiment. A Japan holiday today could impact liquidity in the Asian session. China releases trade data for December, which could dictate near-term direction.
US30 USD Daily Chart
Source: OANDA fxTrade
- The Dow Jones 30 Futures index posted its biggest weekly gain since late-November last week, buoyed by a dovish shift from the Fed
- The 61.8% Fibonacci retracement of December’s drop is at 24,308, while the 55-day moving average has edged lower to 24,411
- US consumer prices matched expectations in December, falling 0.1% m/m, the first decline in nine months. There are no major data releases today but markets will be keeping an eye on the US government shutdown situation.
DE30 EUR Daily Chart
Source: OANDA fxTrade
- The DAX index snapped a three-day winning streak on Friday as the UK’s looming parliamentary Brexit vote (tomorrow) dented sentiment
- The 55-day moving average at 11,098 looks as if it might continue to cap the recent upmove, as the slow stochastics momentum indicator turns bearish
- Euro-zone industrial production data for November is due today. It’s expected to decline 1.0% m/m and a worse number could suggest a near-term top is in place for German equities.
China A50 USD Daily Chart
Source: OANDA fxTrade
- China shares rose four out of five days last week, the third weekly advance in a row, as trade talk hopes increased
- The 55-day moving average is at 10,916. The index has traded below this average since December 13
- China’s trade data for December are due today. Imports are expected to increase to 5.0% y/y from +3.0% in November, while export growth is seen slowing to +3.0% from +5.4%.
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