Stock market futures flat as market monitor India’s covid and U.S corporate earnings
Last week, the market was caught by surprise by Joe Biden’s plan to raise capital gain tax for those earning $1 million or more. The capital gain tax is planned to increase from 20% to 39.6%. The U.S stock market swiftly turned lower on Thursday but managed to renounce on Friday’s trading session.
This week, traders mostly on alert over rising coronavirus cases in India. The country reported a daily increase of new coronavirus cases of 349k. In four days, there were 1.2 million new cases. Despite the high vaccination rate in the world, it seems the spread of the virus starts to increase again. The current increase is attributed to the Kumbh Mela pilgrimage earlier this month.
Traders will focus on corporate results this week as major companies set to report. Aside from that, traders and investors will observe the Fed interest-rate announcement too.
Asian & European Stock market
The Asian stock market mixed today. Japan stock market up 105.60 points (+0.36%) to 29,126.23, China stock market down 33.00 points (-0.95%) to 3,441.17 and Australia ASX 200 down 15.10 points (-0.21%) to 7,045.60. The European stock also mixed. DAX Germany down 34.34%, UK FTSE up 0.03%, and Euro STOXX600 down 0.09%
Dow Jones Industrial Average (INDU)
DJIA is in consolidation after the all-time high of 34,256.75. It is not far from the 35,000 handles which means it has higher odds to continue moving upward than start a correction toward 33,000. No change to the direction of the bullish trend yet. Traders will continue to avoid shorting the equity market and waiting for a bearish correction to enter long positions.
Shopify Inc (SHOP)
SHOP share prices retrace to its daily SMA 200 which means another chance for traders to add long positions. A stop order could be placed below the averages or previous swing low at $1,005. If the share prices could bounce from the averages and climb above $1,250 then the long-term bullish trend will continue.