Daily Markets Broadcast July 22, 2019
US indices gave back early gains to close in the red on Friday after Fed’s Bullard dented hopes of a 50bps rate cut next week. Weekend protest in Hong Kong turned violent again, which could hurt Hong Kong and China shares. Tensions remain high in the Gulf.
US30USD Daily Chart
- The US30 index slumped to the lowest close in more than a week on Friday, despite upbeat earnings from Microsoft (NASDAQ:MSFT).
- The 100-day moving average at 26,155 and the 55-day average at 26,222 continue to track each other higher.
- St. Louis Fed President James Bullard said a 50-basis-point cut would be overdone and may cause markets to sell-off. There are no US data releases scheduled for today.
DE30EUR Daily Chart
- The Germany30 index fell for a third straight day on Friday amid rising speculation that Italy may be headed for early elections.
- The index is hovering above the 55-day moving average at 12,197, which has supported prices on a closing basis since June 3.
- Germany’s producer prices fell more than expected in June, declining 0.4% m/m versus a forecast of -0.2%. That was the weakest reading in six months. There are no major data releases from either Germany or the eurozone today.
WTICOUSD Daily Chart
- Crude Oil prices snapped a five-day losing streak on Friday after news emerged that Iran had seized a British oil tanker in the Straits of Hormuz, heightening geopolitical tensions in the region.
- WTI is extending the rebound from one-month lows to a second day in early trading this morning. Prices are rising toward the 200-day moving average at $57.27.
- The American Petroleum Institute releases crude oil stockpiles data as at July 19 tomorrow. Last week saw a drawdown of 1.4 million barrels from inventories.