DJIA futures drop 400 points after U.S oil prices wipeout

The previous day surprise crash in U.S oil prices triggered sell-off in the market. Today DJIA futures also traded lower more than 400 points which expected to continue after the market open. It seems the drop in oil prices is a predicament for further weakness in the economy for the short-medium-term.

In the COVID-19 cases, the cases in the U.S seem has reached the peak and start to decline. Businesses soon will reopen and how long the economy return to its normal state will influence the market sentiment.

Asian & European Stock market

The Asian stock market mostly lower. Japan’s stock market down 388.34 points (-1.97%) to 19,280.78, China stock market down 25.54 (-0.90%) to 2,827.01 and Australia ASX 200 down 131.70 points (-2.46%) to 5,221.30. The European stock market also on the path lower. DAX Germany down 2.78%, FTSE UK down 1.94%, Euro STOXX 600 down 2.25%

Technical Analysis

Dow Jones Industrial Average (INDU)

The DJIA index traded lower yesterday following the historic drop in U.S oil prices. Technically, DJIA set to target 22,500 support levels. There is no change to the outlook of the index yet which trade between 22,500 – 24,250. Traders will wait for further reaction and movement outside of the range before determining the next trend.

McCormick & Company (MKC)

MKC share prices bullish correction has reached the level near a cluster of averages. At the current time, the global stock market is pulling back lower as U.S oil prices take hit. MKC share prices might get a rejection from the cluster of averages and resume its bearish movement.