US indices edge higher

They say no news is good news and at the moment this appears to be true regarding the US-China trade negotiations. Wall Street edged higher yesterday, touching fresh record highs, despite no news of progress. Hong Kong is facing a standoff between police and students at a university. The UK appears to be favouring Boris Johnson in the run-up to the December election.

 

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index touched a new record high yesterday but has opened in the red this morning

• The 55-day moving average has risen to 27,020 while trendline support could be found near the 27,245 level

• US housing starts and building permits data for October are due today, with starts probably rising 0.6% after a 9.4% decline in September.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index remains stuck in a narrow band that has been in place for almost two weeks

• The 55-day moving average has risen to 12,609. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960

• The German Bundesbank’s monthly report warned that Q4 growth could stagnate, but with only a slight risk of a prolonged recession. (Note: The first estimate of Q3 growth was +0.1% q/q). There are no major data releases scheduled for today.

 

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index is struggling for traction despite a positive outlook for a trade deal as the ongoing Hong Kong unrest and the rising threat of violent intervention caps risk appetite

• The index is sitting on the 55-day moving average at 13,883, which has supported prices on a closing basis since October 8

• The Hong Kong government has ordered schools and colleges to be closed for a sixth day and has cautioned that District Council elections scheduled for this Sunday may be cancelled.