Market News
- Dow Jones index surged more than 300 points last night after China struck a hopeful tone on trade with the U.S. but continued fears about a global growth slowdown, or even a recession, capped the sharp rallies. S&P 500 index rose 36 points while Nasdaq Composite index gained 116 points.
- China’s commerce ministry said Thursday that they firmly reject an escalation of the trade war and are willing to resolve its trade fight with Washington calmly, hinting Chinese authorities will not retaliate against the latest round of U.S. tariffs that started in September.
- The two economic powerhouses were discussing for the next round of face-to-face talks that scheduled for September. However, Beijing added and said that it was important for Washington to cancel a tariff increase.
Market Views
- Asian stocks rose on Friday morning amid positive signals from Beijing on U.S.-China trade war and an overnight strong rally on Wall Street. Hang Seng index advanced 126 points and Nikkei 225 index jumped 240 points.
- Meanwhile, a closely watched yield curve inversion in U.S. Treasuries remained, with the yield on the 10-year Treasury note below that of the 2-year note’s rate. That has raised concerns among some investors as the phenomenon has historically preceded a recession.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,436
Target price:
Protective stop:
Outlook
Last night, price broke and closed above the 50EMA with a bullish green candlestick. This morning, it is still above the 50EMA. It is heading towards the mid-June low resistance level. Do watch out for the price reaction at this level. Price could be testing its high at 27,400 should it manage to break above that resistance level. A failure move would target its previous low at 25,280. Stochastic is still rising but MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,841
Target price:
Protective stop:
Outlook
The declining 20EMA is acting as a resistance, capping price’s rebound at the moment. We are expecting price to test the 20EMA again and the test reaction is likely to determine the next directional move. We expect the index to trend lower and test its previous low at 24,941 again as the steep slope of the 20EMA is hinting at a strong downtrend. A move the 20EMA could bring the index higher to test the gap area 27,056 to 27,730. Stochastic is weak at the moment and MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7715
Target price :
Protective stop:
Outlook
Price is still moving within a previous high and previous support point. Price is likely to move within the resistance at 7780 and support at 7355 until it can move out of this range. Stochastic could turn up again, but Stochastic is flat and not strong at the moment. MACD is still bearish at the moment but the slow line has been climbing higher.
Trading Idea
Wait for better trading idea
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 2649
Target price:
Protective stop :
Outlook
The index hit the 50EMA resistance yesterday after rebounding from the low on 26 Aug. Price is now staying above the 50EMA and is still rising. It could be heading towards its first layer of resistance at Fibonacci 62% retracement point at 6730. Stochastic is rising at the moment. MACD is still bearish but the slow line has been climbing higher.
Trading Idea
Wait for better trading idea.
