Global equity market slumped as BOE warned, inflation “Tiger” has awaken

The rising yield on U.S 10-year treasury finally sends a bearish wave to the market and triggers a sell-off in the global stock market. Yesterday, the DJIA index down 559.85 points and will add more loss today. It is the awaited bearish pullback that could send the index down to test 30,000 handles.

Traders might want to prepare for medium-term bearish pressure as inflation might keep ticking up and the Fed will need to raise interest-rate soon.

Asian & European Stock market

The Asian stock market sharply lower today. Japan stock market down 1202.26 points (-3.99%) to 28,966.01, China stock down 75.97 points (-2.12%) to 3,509.08 and Australia ASX 200 down 160.70 points (-2.35%) to 6,673.30 . The European stock market also lower. DAX Germany down 0.74%, UK FTSE down 1.85%, and Euro Stoxx600 down 1.28%.

Technical Analysis

Dow Jones Industrial Average (INDU)

Time for a major bearish correction might have come. DJIA index closed lower yesterday after Wednesday’s new record high. Daily SMA 50 is the nearest level to watch for a bearish pullback. Aside from that, the 30,000 handles also will become a major support level to break.

Electronic Arts Inc (EA)

EA share prices declined toward the daily SMA 100 & 200. The share prices will test both averages and looking to bounce from it. We think the current bearish pressure might trigger further weakness and EA share prices could reach the bullish trendline. Long positions could be considered when there is a major bullish reaction from the trendline or the averages.