Wall Street tumbles to six-week low

Weak jobs data and an escalation in US-China tensions over the arrest of Huawei’s CFO combined to pressure US futures markets in early trading today.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index has fallen to the lowest since October 26 this morning, following on from Friday’s losses

• The 100-week moving average is at 23,475

• The US economy added just 155,000 jobs in November, well below forecasts of +200,000 and a marked slowdown from October’s revised +237,000.

DE30EUR Monthly Chart

Source: OANDA fxTrade

• The Germany30 index is under pressure again today after suffering the worst weekly loss since March

• The index looks set to close below the 55-month moving average at 11,233 for the first time since December 2011

• Germany’s October trade surplus is expected to widen to EUR17.7b from 17.6b in September. Trade tariffs do not appear to be affecting the trade balance so far.

WTICOUSD Weekly Chart

Source: OANDA fxTrade

• West Texas Intermediate looks poised for its second daily advance in a row after posting the biggest weekly gain in 10 weeks last week

• Fibonacci retracement resistance may be found at $55.858, 23.6% retracement of the October-November drop

• OPEC and non-OPEC producers pushed forward with an agreement to cut production by 1.2m bpd, without any assurances Iran would cap its production.