Trade concern slam the market

Stock futures traded lower as trade concern re-emerge and slam the market. President Trump administration is looking for the possibility to slap a tariff of 25% against $200 billion value imported goods from China. The plan will be received by China with retaliation, to defend nation dignity. We might see trade concern spiraling further.

Federal Reserve announced no change in the interest rate, but cited economy is strong. The announcement boosted U.S dollar and strengthening the view of rate-hike in September. BOE, on the other hand, raise rate 25 bps from 0.50% to 0.75% following analysts consensus. Despite the rate-hike, Pound sterling took South direction and almost reach 1.3000 against U.S dollar.

Asian & European Stock market

Asian stock underwater as trade concern shakes the market. Nikkei closed down 234.17 points (-1.03%) to 22,512.53, Shang Hai Composite closed down 57.30 points (-2.03%) to 2,767.23 and Australia ASX 200 down 34.80 points (-0.55%) to 6,240.90. European stock market tumbled. DAX Germany down 1.55%, FTSE UK down 0.92%, and Euro STOXX 600 down 0.85%.

Technical Analysis

Dow Jones Industrial Average (INDU)

A bearish candlestick printed in the previous day after the Fed hold interest-rate unchanged as expected. The index fell because of trade wars back under concern. It is possible for the index to continue its downward movement until it reaches trendline or the daily averages.

Air Products and Chemicals (APD)

APD bounce after earnings result tested broken resistances, the trendline and daily SMA 200. There is a bearish sign after the test, and it is possible for the share prices to use both resistances as bounce levels. Traders could look for short position while waiting for a lower close below the weekly low.

FedEx Corp (FDX)

The situation of FDX is similar to the situation of APD. The share prices broke below its daily SMA 200 and made a bullish correction. APD proceeded higher and reached daily SMA 200 before making a bearish reaction. If the bear takes a grip on the situation, then we will see FDX start a new bearish leg.