Wall Street slides ahead of long weekend

US indices fell Friday amid caution about the spread of the CoVid-19 ahead of the long weekend in the US. Today is President’s Day, so liquidity and volumes could be limited. China, Hong Kong and Singapore have pledged fiscal stimulus to fight the downturn caused by the virus outbreak.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index fell for a second straight day Friday amid some position squaring ahead of the US long weekend

• The 55-day moving average has risen to at 28,685 while the 100-day moving average is at 28,011

• There are no major data releases scheduled for today’s holiday.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index was little changed on Friday, even though data showed the region’s main economy stagnated in Q4

• The index remains above the 55-day moving average at 13,343 while the 100-day average provides longer-term support below at 13,076

• The German economy registered zero growth on a quarter-by-quarter basis in Q4, while the Euro-zone economy expanded just 0.1% q/q. There are no major data releases scheduled for today.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index has opened higher this morning, building on Friday’s gains, after China pledged extra fiscal stimulus to combat the impact of the CoVid-19 virus

• The index has been oscillating around the 200-day moving average for the past week. It’s at 13,600 today

• We are still waiting for China’s new loans data for January, which are expected to show a total of 3.0 trillion yuan of loans extended during the month. That would be the highest total in a year.