Market News
- U.S. stocks were higher at the close on Thursday, climbing for a second day as progress in U.S.-China trade talks lifted the market. The Dow Jones index closed 150 points higher while the S&P 500 index gained 18 points. The Nasdaq Composite index was up 47 points.
- The trade optimism was set off in part by President Donald Trump, who tweeted that Chinese Vice-Premier Liu He, chief of the Chinese negotiating team, would visit the White House on Friday, raising expectations that a trade deal could be reached by the two economic powerhouses.
- Fears that the Chinese delegation would leave Washington a day early on Thursday, after just a day of talks, as Bloomberg had reported on Wednesday, had sent futures markets plunging. Trump’s tweet helped to allay such fear and lifted hopes of a trade resolution.
Market Views
- Stocks in Asia gained on Friday morning amid positive developments on the U.S.-China trade front. Positive Brexit news also helped to lift investors’ sentiment and European equity markets. Positive sentiment was carried over to the Asian market with Nikkei 225 index climbing 239 points while Hang Seng index is up 563 points.
- U.S. consumer prices were unchanged in September and underlying inflation retreated, supporting expectations the Federal Reserve will cut interest rates in October for a third time in 2019. Fed’s Chair Powell had hinted of possible rate cut on Tuesday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,625
Target price:
Protective stop:
Outlook
The recent rebound has moved above the 20EMA. Price is supported by the rising trendline as well. As long as this trendline holds, we are likely to test 26,710. However a move and close below the trendline would target the previous trough at 25,080. Stochastic is moving up at the moment. MACD has yet to turn bullish with both its lines below the zero line but MACD is near to the zero line and could cross over.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,341
Target price:
Protective stop:
Outlook
The index tested the low yesterday and managed to bounce back higher. Today the index was has a strong long candle that moved above the 20EMA. The index may have formed a base at 25,230. As long as the support at 25,230 holds, price could test the Fibonacci 38% at 26,490 and later 27,440. Stochastic is moving up from the oversold extreme and MACD has a bullish crossover in the bearish zone.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7684
Target price :
Protective stop:
Outlook
The index was capped by the 7780 resistance level previously and today this index have moved above the 7780 resistance. If the index can stay above the 20EMA support at 7730, we could expect further price rally towards 7980 again. Stochastic is moving higher at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,796
Target price:
Protective stop :
Outlook
The decline managed to hold at the Fibonacci 50% correction point at 21,703 and this index has now moved above the 20EMA. This index is likely to test the high of 22,275 if it can stay above the 20EMA. Stochastic is turning up from near the oversold extreme. Both of MACD indicator’s lines have moved above the zero line and there could be a bullish crossover from both MACD’s lines in the coming session.
Trading Idea
Wait for better trading idea.
