Wall Street drops on trade, recession fears

Andrew Robinson MarketPulse

US indices fell for a second consecutive day yesterday, constantly pressured by the threat of prolonged US-China trade talks and the implications for global growth. Singapore’s second quarter growth was revised slightly higher but missed forecasts.

US30USD Daily Chart

Source: OANDA fxTrade

The US30 index fell the most in five days yesterday amid heightened recession concerns
The index remains trapped between the 55-day moving average at 26,469 and the 200-day moving average at 25,579
US consumer prices probably rose 0.3% m/m in July, the latest survey of analysts shows. That’s an acceleration from June’s 0.1% print. An above-forecast reading would question the Fed’s expected easing cycle.

DE30EUR Daily Chart

Source: OANDA fxTrade

The Germany30 index fell for a second straight day yesterday, pressured by Wall Street’s direction and the cloud of an uncertain Brexit
The index is flirting with the 200-day moving average at 11,658
German CPI is seen unchanged at +0.5% m/m and +1.7% y/y in July, the latest poll of economists shows.

SG30SGD Daily Chart

Source: OANDA fxTrade

The Singapore30 index fell for a second straight day yesterday and could fall further this morning following the worse-than-expected revision to second quarter growth
The index could test last week’s low, which in turn was the lowest since June 11
The Singapore economy contracted 3.3% q/q in the second quarter, the latest revision to growth data indicated. That’s an improvement from the first estimate of -3.4% but much worse than the -2.9% that had been expected.

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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