News & Analysis
US economy optimism; Strong manufacturing oil tumbles
US and European stocks started the fourth quarter in the black. The Dow Jones and S&P500 hit new highs. Dow Jones +152.51 .68%; S&P500 +9.76 .39%; FTSE +66.08 .90%; DAX +73.79 .58%. US shares were driven by stronger than expected manufacturing PMI data, 2.7% GDP outlook and the new tax plan. The tax plan still has details to be worked out but the market sees positives in it. Oil fell on Monday night losing 101 cents. Fears that US shale growth and uncertainty around China’s imports increasing stockpiles combined with USD strength have hurt short-term demand.
ASX200 opened at 5729.30 and we’re looking for stronger open on the Nikkei.
UK100 two very impressive sessions have taken price to an area that may develop into a supply zone. This is an area to watch as sellers have on five times stopped buyer advances.
US30 impressive break-out overnight confirming a trend continuation. Once price broke 22.425 it didn’t look back. After an extension higher like this it’s normal to see a day or two of consolidation.
USOUSD price has put in a low at $50.43 level, this still needs to confirm but buyers have drawn a short-term line. This needs some time but with confirmation of a low we could see a continuation set-up develop. Further selling and close below $50.43 shows sellers still have control.