Market News
- News that Trump was expected to delay the implementation of auto tariffs on imported cars and parts by up to six months send US equity market higher after weaker-than-expected economic data stoked fears that the U.S.-China trade war was dragging down global economic growth.
- Dow Jones closed up 115 points at 25,648 after falling as much as 190 points earlier in the session. S&P 500 and Nasdaq Composite gained 16 points and 87 points respectively to end the day, continuing a second day of recovery.
- Weaker-than-expected US economic data had stoked fears that the U.S.-China trade war was dragging down global economic growth. U.S. retail sales fell 0.2% in April, adding to the fears. Overnight, Chinese industrial production rose by 5.4% in April on a year-over-year basis against an expectation of 6.5, notching the slowest pace of growth since May 2003.
Market Views
- Asian shares steadied on Thursday on news that U.S. President Donald Trump is planning to delay tariffs on auto imports, providing much needed relief to markets hit by a flare-up in trade tensions and weak U.S. and Chinese economic data.
- US President Trump is wary of imposing tariffs on imported cars and parts and is planning to delay that decision by 6 months. This raises hopes that the U.S.-China trade tariffs dispute can over time comes to a resolution.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,616
Target price:
Protective stop:
Outlook
This index managed to close higher for a second consecutive day but it is still too early to call for an end of the correction. While price has managed to stay above an important support at 25,229 and above the Fibonacci 38% correction of 2019’s rally, it is still below the 20EMA. MACD is also bearish. Stochastic has yet to turn higher despite 2 days of recovery. If price rally is capped at 25,868, there is a possibility of a decline to 24,707.
Trading Idea
Wait for a price dip to 24,707 to get into a long position for the next rally.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,352
Target price:
Protective stop:
Outlook
Yesterday, a rally to close the gap at 28,475 stalled at the upper end of the gap. This index will need to move above the resistance at 28,475 in order to move higher to the 20EMA at 29,116. If it stays below this gap resistance, it is likely to move lower to test the support zone from 27,774 to 27,579. Stochastic is into oversold extreme but MACD is still bearish.
Trading Idea
Wait for price to come into the support zone from 27,774 to 27,595 to get into a long position for the next rally.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7481
Target price
Protective stop:
Outlook
Price has managed to bounce off near a support area at 7247 and has managed to recover to 7521. This resistance had capped the index’s advance twice. There is also the 20EMA resistance at 7593 to content with. If price is unable to break above this resistance zone, it is likely to decline back to 7202.
Trading Idea
Wait for price decline to support zone at 7202 to get into a long position.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,028
Target price:
Protective stop :
Outlook
On the 4-hourly chart, this index has been capped by its previous support of the past. 20EMA resistance point is also nearby. MACD has been bearish and its fast line has been unable to move above the zero line. Stochastic is also weak and could be heading lower. Overhead resistance and weak momentum may combine to bring this index lower to test its previous low at 20,764.
Trading Idea
Sell at 21,115 for a test of 20,764 with stop above 21,300.
