Markets lifted by tariff delay

Andrew Robinson MarketPulse

Reports that US President Trump is to delay the latest increase on tariffs on Chinese goods to October 15 from October 1 boosted sentiment across equity markets. Oil prices slid as Trump is said to have considered easing sanctions on Iran.

US30USD Daily Chart

Source: OANDA fxTrade

The US30 index looks poised to extend the current rally to a seventh day today amid better risk appetite for stocks
The index has touched the highest since July 25 in early trading this morning. The 55-day moving average has risen to 26,581
US consumer prices are expected to rise 0.1% m/m in August, a slower pace than the +0.3% recorded in July, which might give the Federal Reserve more leeway in its easing plans.

DE30EUR Daily Chart

Source: OANDA fxTrade

The Germany30 index could be heading for its seventh consecutive daily gain today, given the positive mood across other markets and an expected easing announcement from the ECB today
The index hit the highest level since July 30 yesterday, and could be lifted to a seven week high today
The European Central Bank is expected to announce some form of easing at today’s rate meeting and is also seen trimming growth projections for 2019 and 2020.

WTICOUSD Daily Chart

Source: OANDA fxTrade

WTI crude oil prices fell the most in six weeks yesterday amid reports that US President Trump had considered easing some sanctions on Iran
Prices closed below the 200-day moving average at $56.18 for the first time in a week. The 55-week moving average at $58.45 has capped prices on a closing basis since May, and appears to be strong resistance for now
Weekly US crude oil stockpiles data to September 6 were released yesterday and showed a drawdown of 6.9 million barrels. That was the fourth decrease in a row.

Author

Andrew Robinson

MarketPulse

A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentar

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