Wall Street buoyed by trade talk progress

Wall Street was lifted by positive comments about pre-meeting trade discussions between US and China. The talks officially start today. Japan’s Q4 GDP came in as expected, rebounding from Q3’s contraction.


US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index hit the highest since December 4 yesterday before edging off into the close. Progress in the US-China trade discussions, which officially start today in Beijing, supported the upmove

  • The index has yet to test the 78.6% Fibonacci retracement of the October-December drop at 25,768. The 200-day moving average is at 25,038

  • US retail sales are seen rising 0.2% m/m in December, the same pace as in November, according to recent surveys.


DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rose for a third day yesterday, taking its cue from sentiment on Wall Street

  • The index is edged closer toward the 100-day moving average at 11,305

  • Germany’s Q4 GDP growth is expected to slow to +0.7% y/y from +1.1% in Q3, latest surveys show. A more marked slowdown would be negative for the index.


JP225USD Daily Chart

Source: OANDA fxTrade

  • The Japan225 index hit the highest in almost two month this morning, encouraged by the uptick in Japan’s GDP in Q4 and the positive close on Wall Street

  • The index is rising toward the 100-day moving average at 21,586, which has capped prices since December 4

  • The Japanese economy expanded 1.4% y/y in the fourth quarter of 2018, as expected, snapping the run of two quarters of negative growth.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.