Wall Street closes off another winning week

US indices completed another positive week with strong bank earnings lifting the SPX500. Encouraging data and M&A rumours helped sentiment while global finance chiefs at the IMF meeting were confident that the world economy will rebound.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index rose for a second straight week last week, hitting the high for the week on Friday

• The next possible resistance point could be October’s high of 26,960. The rising 55-day moving average is at 25,737

• The NY Empire State manufacturing index is expected to rebound to 6.0 in April from 3.7 in March.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index extended its recent rally to three weeks last week, rising to the highest since October 8 on Friday, as it tracked gains in Asia

• The index is still holding below the 61.8% Fibonacci retracement level of the May-December drop at 12,089

• There are no economic data from either Germany or the Euro-zone scheduled for today. ECB policymakers were said to be leaning towards offering negative rates on targeted loans to banks that achieve lending targets.

CN50USD Weekly Chart

Source: OANDA fxTrade

• The CN50 index rebounded off 1-1/2 week lows on Friday after new loans data for March came in well above expectations, implying that stimulus measures are filtering through to the Chinese economy and hopefully supporting it

• The rebound was not enough to bring the index into positive territory for the week as it suffered the first down-week in three weeks. The 78.6% Fibonacci retracement of the 2018 drop is at 13,917

• New loans hit 1.69 trillion yuan ($252 billion) in March, higher than the 1.2 trillion expected. Today we see Foreign Direct Investment data for March, which rose 5.5% y/y last month.