Wall Street slides after softer economic data

US indices were slightly lower at the close of business yesterday after US retail sales came in below forecast in September. A Brexit deal appears to be almost there with reports that Ireland’s DUP may be willing to accept the proposed deal. The two-day EU summit on Brexit starts today.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index has extended yesterday’s small losses in early trading this morning, setting up a second daily loss in a row

• The index is back below the 78.6% Fibonacci retracement of the drop from September 12 to October 3 at 26,974. The 100-day moving average has risen to 26,529

• US retail sales unexpectedly fell 0.3% m/m in September, the first contraction in five months. US housing starts are seen falling 8.6% in September after a 12.3% gain the previous month.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index climbed to the highest level since August 8 last year, advancing for a second day, amid heightened Brexit deal hopes. The deal could be agreed at the EU summit that runs from today to Friday

• The next major resistance point could be the July 2018 high of 12,890. The 100-day moving average is at 12,155 today

• The only major data point today is construction output for August for the Euro-zone, which is seen falling 0.8% m/m after a 0.73% contraction in July.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

• Oil prices only registered a small gain yesterday to snap a two-day losing streak following a huge increase in inventories

• West Texas Intermediate (WTI) is holding below the 55- and 100-day moving averages at $55.27 and $55.63 respectively

• Weekly data from the American Petroleum Industries showed a surprising 10.5 million barrel increase in stockpiles in the week to October 11. That’s a sharp jump from last week’s 4.13 million barrel addition.