Dovish fed and U.S-China agreement outline to boost the market

The global stock market across the world turn positive on U.S-China agreement outlining today. The outline on the trade deal expected to end the current trade war and avoid the tariff implementation deadline on 1 March. In the previous day, the Fed minutes of meeting confirm the central bank interest outlook. The central bank said it’s patient on the future interest rate.

Stock market expected to rally under the current fundamental situation. If U.S-China reach a deal then there is more reason to see the stock market continue higher.

Asian & European Stock market

Asian stock market mixed. Japan stock market up 32.74 points (+0.15%) to 21,464.23, China Shanghai Composite down 9.42 points (-0.34%) to 2,751.80, and Australia ASX 200 up 42.70 points (+0.70%) to 6,139.20. European stock market also mixed. DAX Germany up 0.23%, UK FTSE down 0.71%, Euro STOXX600 down 0.15%.

Technical Analysis

Dow Jones Industrial Average (INDU)

No change in DJIA analysis yet as the index testing 26,000 resistance. It could either breakout above the level or rejected from it. If the index rejected from the resistance then we could expect it to move down and test daily SMA 200.

Caterpillar Inc (CAT)

CAT climbed above daily SMA 200 for the first time since October last year. The close above SMA 200 is bullish and might invite further upside in the share prices. At the current time, if CAT moves down then it will find support at the daily SMA 200. On the upside, $142.00 – $145.00 will become resistance to break for the bull.

Freeport Mcmoran (FCX)

FCX share prices hit daily SMA 200 yesterday and produce a bearish candlestick. Nevertheless, the share prices closed higher than Tuesday close. Optimism building on the share prices. If it corrected lower then the level around $12.50 will provide support. On the other hand, if breakout happens then traders could watch the level around $14.60 as a target.