Global market shrug-off trade fear and climb

The global market kick-off the week with an upward movement, shrugging of fear on trade wars. U.S stock market also set to open higher after previous Friday slump of more than 500 points. This week, we have major speeches from central banks. ECB President Draghi set to open the speech on Wednesday followed by BOJ Gov. Kuroda. On the same day, The Fed also set to release minutes of the meeting.

The market will switch attention to BOE Gov. Carney speech later on Thursday. Traders will crunch all of the speeches this week and determine the global market strength. Overall, we expect sentiment of trade war fear will continue to drive the market this week.

Asian & European Stock market

Asian stock market bounced up today. Nikkei closed up 110.74 points (+0.51%) to 21,678.26, Shang Hai Composite closed up 8.22 points (+0.26%) to 3,139.33 and Australia ASX 200 up 20.00 points (+0.35%) to 5,808.70. European stock market also on the path higher. DAX Germany up 1.01%, FTSE UK up 0.21%, and Euro STOXX 600 up 0.54%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA is hovering between the SMA 100 & 200 and might continue traded between both averages. However, there is hope for the bull as the index futures pointed more than 200 points upward before the market open. If the bullish sentiment continues, then we will see the test of SMA 100 soon.

Micron Technology Inc (MU)

MU has a simple bullish setup on the daily chart. The share prices correction has reached major support level where there is SMA 50 & 100 present. If the bull could stop the downward correction and leave the area between $47.00 – $50.00 then MU might continue its bullish trend.

Other Watchlists

HPQ – The share prices are testing the daily SMA 200. There is strong bearish momentum and might break below the averages. Watch for either long or short opportunity near the averages. Short need to wait until close below SMA 200 and retest happen.