Wall Street boosted by strong earnings

US indices saw a solid rally yesterday, boosted by strong earnings reports from the likes of Goldman Sachs, Johnson & Johnson and Netflix, while strong

data also helped sentiment. All indices have regained the 200-day moving averages. Markets will focus attention on the minutes of the last FOMC meeting, which will be released later today.

US30USD Daily Chart

Source: Oanda fxTrade

• The US30 index posted its biggest one-day gain in eight months yesterday, lifted by strong earnings reports

• The index rallied through the 100-day moving average at 25,464 and looks set to test the 55-day moving average at 25,962

• August’s JOLT job openings hit a record 7.14 million, data released yesterday showed. Tonight we see the minutes of the last Fed meeting where they hiked rates by 25bps. We may get to see how the discussions went regarding the future trajectory of interest rates

 

DE30EUR Daily Chart

Source: Oanda fxTrade

• The Germany30 index rose for a third straight day to a new weekly high yesterday, echoing sentiment on Wall Street

• The index rebounded strongly from the 200-week moving average at 11,474. The next resistance point could be the 55-day moving average at 12,258. This average has capped prices on a closing basis since end-August

• Euro-zone CPI data for September is due today. Prices are expected to increase 0.5% m/m from 0.2%, and a higher reading could hurt the index

 

JP225USD Daily Chart

Source: Oanda fxTrade

• The Japan225 index recorded its largest one-day gain since July 2016 yesterday

• The index is testing resistance at the 55-day moving average at 23,011

• Despite the strong performance yesterday, the index is still 3.3% lower than at the open last week