Wall Street gains as trade hopes build
US indices pushed higher yesterday on hopes that a US-China Phase 1 deal will be coming soon. The SPX500 and NAS100 indices hit record highs, by a whisker, while the US30 index lagged. Hong Kong shares were boosted by a peaceful election. Powell said the Fed is strongly committed to a 2% inflation target, which might imply rates will not be raised anytime soon.
US30USD Daily Chart
- The US30 index looks set to advance for a third day today, with last week’s record high still in sight.
- The 55-day moving average has risen to 27,124 while trendline support could be found near the 27,240 level
- US new home sales probably rose 1.2% m/m in October, according to the latest survey of analysts. That’s a sharp turnaround from September’s 0.7% decline. Fed’s Brainard is also scheduled to speak.
DE30EUR Daily Chart
- The Germany30 index advanced for a third day yesterday and looks set to extend those gains into today as it takes its cue from Wall Street.
- The 55-day moving average has risen to 12,704. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960.
- Germany’s Gfk survey is expected to show that consumer confidence was unchanged at 9.6 in December, according to the latest forecasts by economists. Speeches from ECB’s Mersch, De Guindos and Lane are scheduled.
HK33HKD Daily Chart
- The HongKong33 index jumped the most in more than three weeks yesterday following peaceful district elections at the weekend where pro-democracy groups won about 85% of the seats.
- The 200-day moving average is at 27,704 and has capped prices since November 8.
- Most observers doubt that China will soften its stance toward Hong Kong after the pro-democracy wins at the weekend. China has reportedly summoned the US ambassador over Hong Kong interference.