The dawn of new trade war
In the previous day, U.S stock market traded lower after Boeing cut its monthly production plan for 737 series. The event sent Boeing share prices down 4.44% for the day.
Today, trade tension between EU and U.S ignited after the plan to slap $11 billion tariffs on EU imports. The plan comes after WTO ruled last year that EU granted illegal subsidies to Airbus. U.S plan immediately retaliated by EU, the EU spokesperson said EU has complied with WTO ruling and will wait authorized retaliation by WTO.
Oil prices skyrocketing on Brewing conflict in Libya and heightened tension between Iran and the U.S. We might see further upside in the oil prices as long as the conflicts continue.
Asian & European Stock market
Asian stock market mostly higher. Japan stock market up 40.94 points (+0.19%) to 21,802.59, China Shanghai Composite down 5.15 points (-0.16%) to 3,239.66, and Australia ASX 200 up 0.40 points (+0.01%) to 6,221.80. European stock market mixed. DAX Germany down 0.29%, UK FTSE down 0.03%, Euro STOXX600 up 0.05%.
Dow Jones Industrial Average (INDU)
DJIA gapped down at the beginning of the week and might continue moving down to test 26,000. Bearish sentiment emerges after the Boeing issue and the possibility of a new trade war between the U.S and EU. Traders also getting cautious before earnings result from companies in the U.S.
If DJIA could hold the ground above 26,000 then we could expect the index to continue upward.
Hasbro Inc (HAS)
HAS is in a critical situation, the share prices traded between horizontal support and the SMA’s. The situation favors downward breakout. If HAS could climb above both SMA 50 & 100 then it is possible for the share prices to continue higher and test $90.00 and SMA 200.
Western Digital Corp (WDC)
WDC overall trend is bearish and continues traded below SMA 200. No reason to go long yet in the share prices. Currently, WDC set to test SMA 200 from below. Traders will wait for the result of the test, either rejection or breakout from the SMA 200.