Market News
- Stocks fell on Tuesday as U.S.-China trade tensions rose further ahead of high-level trade talks, after Washington imposed visa restrictions on Chinese government and Communist Party officials over abuses of Muslim minorities.
- This move came only hours after the Trump administration widened its trade blacklist to include some of China’s top artificial intelligence start-ups. Dow Jones plunged 313 points, S&P 500 was lower 45 points and Nasdaq Composite fell 132 points.
- U.S. Treasury yield curve steepened, driven by a falling two-year yield after Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases to address a recent spike in money markets rates.
Market Views
- Asian stocks fell the most in a week on Wednesday morning as the Washington and Beijing’s broadening dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. Nikkei 225 index fell 144 points and Hang Seng index slid 117 points.
- Tit-for-tat tariffs imposed by the U.S. and China have roiled financial markets and slowed capital investment and trade flows. Trump has said tariffs on Chinese imports will rise on Oct. 15 if no progress is made in the coming negotiations.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,247
Target price:
Protective stop:
Outlook
The recent rebound was capped by the falling 20EMA which was also near to the support-turned-resistance level. Last night, price fell but was supported by the rising trendline. As long as this trendline holds, price is likely to test the 20EMA again at 26,580. Price will need to move above the 20EMA to be bullish and for a test of 27,000. A move and close below the trendline would target the previous trough at 25,080. Stochastic is crossing up at the moment but is still weak and MACD has turned bearish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,838
Target price:
Protective stop:
Outlook
Price was capped by the 20EMA for a fourth consecutive day. It could be forming a base at 25,600. As long as this support holds, price could test the Fibonacci 38% at 26,490. A move below 25,600 could target the low at 24,940. Stochastic is in the oversold extreme but weak MACD has turned bearish with both of the MACD’s lines below zero line at current moment
Trading Idea
Bring stop higher to 25,730 and keep profit target at 26,485. Stop triggered
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7634
Target price :
Protective stop:
Outlook
The index was capped by the 7780 resistance level. Price could be consolidating within 7780 and the rising trendline. With the falling 20EMA, we could expect further price decline if price fall and close below the trendline for a test of 7400 or even lower at its previous low at 7220. Price will need to move above 7823 to be bullish again. Stochastic is crossing up but is still weak at the moment and MACD has turned bearish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2901
Target price:
Protective stop :
Outlook
The index was capped by the falling 20EMA and the 2940 resistance level for the past two days. It is now supported by the short term rising trendline. Price could be ranging between the 20EMA and the trendline. We could see price testing its low at 2815 again if price break below the trendline. Stochastic is turning up but is weak at the moment. MACD has turned bearish.
Trading Idea
Wait for better trading idea.
