Flare-up tension between U.S-China to dampen the market

U.S ordered China to close its consulate in Houston earlier this week. Today, China responded by ordering U.S to close the consulate in Chengdu. Both parties’ tension continues to increase and no cooling down yet. If the tension continue to increase then we might see traders and investors turned risk-averse and flight to safe-haven assets.

Currently, gold prices extend its upward movement and soon will reach the all-time high printed in 2011. More uncertainties to cloud the market as coronavirus pandemic has not ended yet without effective vaccine produced.

Asian & European Stock market

The Asian stock mostly lower today. Japan stock market closed for the day, China stock market down 128.34 points (-3.86%) to 3,196.77 and Australia ASX 200 down 70.50 points (-1.16%) to 6,024.00. The European stock market also under bearish pressure. DAX Germany down 1.48%, FTSE UK down 0.90%, Euro STOXX 600 down 1.29%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA rejected from the 27,000 handles yesterday, extending the consolidation between 26,000 – 27,000 range. Today, the index futures mostly flat bearish near the zero levels. We might see a bearish continuation in today’s trading session which might bring DJIA down to reach 26,000 in several days or weeks.

HP Incorporation (HPQ)

HPQ share prices traded inside the triangle formation since March this year. The share prices tested the daily SMA 200 recently and continue moving inside the triangle. A breakout soon will happen, however no clue yet on the breakout direction.

If the share prices make bullish breakout then traders could take long positions when retests on daily SMA 200 happen after the breakout.