U.S-China trade war over? A new threat of trade war between U.S-EU

The optimism after trade truce between U.S and China brought the stock market upward on Monday trading session. But, the optimism quickly faded as Trump administration announced tariff threat to over $4 billion EU goods. The tariff announced against EU long-running aircraft subsidies. Goods such as cheese, Whisky, olives included in the plan.

Asian & European Stock market

Asian stock market traded mixed. Japan’s Nikkei up 24.30 points (+0.11%) to 21,754.27, China stock market down 0.96 (+0.03%) to 3,043.94, and Australia ASX 200 up 5.10 points (+0.08%) to 6,653.20. European stock market is also cautiously higher. DAX Germany flat -0.02%, UK FTSE up 0.57%, Euro STOXX600 up 0.24%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The hope for new all-time high will be postponed as a new trade war between U.S-EU loom. DJIA might continue lower today and this week to test the top of the blue channel or 26,000 support level. Not much to expect on the upside and traders might want to monitor the trade war development now.

Intel Corp (INTC)

INTC could become the target of short positions as the share prices rejected from the daily SMA 200. $50.00 resistance is not far from the current level but further bearish pressure will trigger bearish trend continuation. Traders could take a short position with a stop above SMA 200 or $50.00.