Most U.S. indices closed flat to higher yesterday, though the NAS100 index slumped on news of antitrust probes on the FAANG stocks. Fed’s Bullard said a rate cut may be warranted “soon” on inflation, trade war concerns. RBA is expected to cut its benchmark rate today.
NAS100USD Daily Chart
Source: OANDA fxTrade
- The NAS100 index fell the most in three weeks yesterday on news of an antitrust probe against the tech sector, including Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN), would be launched. The index touched a three-month low
- The index is down 11.7% from the April peak and is heading toward the 50% retracement level of the December to April rally at 6,829
- U.S. factory orders are expected to fall 0.9% m/m in April, according to the latest survey of economists. That comes after a 1.9% gain in March.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 recouped early losses to finish in the black yesterday
- The index rebounded off the 200-day moving average at 11,620, which has supported prices on a closing basis since April 1. The 38.2% Fibonacci retracement of the 2019 rally is at 11,621
- Consumer prices in the Euro-zone are seen rising 1.3% y/y in May, a slower pace than the +1.7% recorded in April. The unemployment rate is seen steady at 7.7% in April.
AU200AUD Daily Chart
Source: OANDA fxTrade
- The AU200 index fell for a second straight day yesterday and is trading unchanged this morning ahead of the RBA rate meeting
- The index is holding above the 55-day moving average at 6,294, as it has done on a closing basis since January 7
- A 25 bps cut from the RBA is fully priced in to markets already. It will be more a question of forward guidance on the next move. Markets are currently pricing in almost two cuts by September while Westpac expects three, possibly four, by year-end.
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