Flat open before the phase on signing

The global stock market mostly lower ahead of the U.S-China signing of phase one trade deal. No detail about the deal mentioned yet, however, Treasury Secretary Steven Mnuchin said the tariff on Chinese goods will remain until both countries reach further agreement in “phase two” deal.

Despite the positive sentiment before the deal, it seems the market taking a negative cue from latest news. We might get a further clue on the market direction after the release of Phase one deal content.

Asian & European Stock market

The Asian stock market pulled lower today. Japan’s stock market down 108.59 points (-0.45%) to 23,916.58, China stock market down 16.78 point (-0.54%) to 3,090.04, and Australia ASX 200 up 32.60 points (+0.47%) to 6,994.80. The European mixed. DAX Germany down 0.08%, UK FTSE up 0.15%, Euro STOXX600 down 0.05%

Technical Analysis

Dow Jones Industrial Average (INDU)

Up, up and away! DJIA printed fresh high yesterday and expected to continue its upward movement. No change to the outlook yet, traders might need to wait until the index reaches 30,000 psychological level before considering any short positions in the equity market.

Wendys Company (WEN)

WEN share prices made a bearish correction and managed to reach the daily SMA 50. There is trendline support near the current level and WEN expected to bounce from it. Traders could look for long positions with a stop below the SMA 100. If WEN continues lower then daily SMA 200 will become the support level to watch.