Rising concern on trade talk before the Fed FOMC meeting

The global stock market suffers a setback today after a tweet from President Trump accused China stalling the trade talk. Moreover, the President also said China not keeping the promise to purchase U.S Agricultural products. Under the current situation, it seems a deal if far to reach.

Meanwhile, DJIA futures pointed up more than 70 points in anticipation of a possible rate cut by the Fed today. The market expects 25 bps rate-cut and hoping for further rate-cut in the future. Deeper rate-cut and confirmation of future rate-cut should catapult the stock market higher.

Asian & European Stock market

Asian stock market mostly lower after a possible breakdown in U.S-China trade talks. Japan’s Nikkei down 187.78 points (-0.86%) to 21,521.53, China stock market down 19.83 (-0.67%) to 2,932.51, and Australia ASX 200 down 32.50 points (-0.47%) to 6,812.60. European stock market mixed. DAX Germany up  0.24%, UK FTSE down 0.41%, Euro STOXX600 flat 0%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA consolidation continues before the Fed interest-rate decision. Aside from the interest-rate decision, the trade talks between the U.S and China might fall apart again and both countries could not reach an agreement. Similar to the previous analysis, DJIA might fall toward the 27,000 support level and test it. Alternatively, DJIA also could resume its bullish trend and print an all-time fresh high.

Under Armour Inc (UA)

UA dived after earnings result yesterday. The share prices manage to found support at the daily SMA 200 and recover part of the losses. If the share prices continue higher then we might see UA limited around $21.80 – $21.90. On the lower side, the share prices might fall below daily SMA 200 and continue to test the trendline.