Dawn of trade wars
Friday marks the beginning of trade wars between U.S and China as both parties shooting each other with trade tariff. U.S impose 25% tariff on China imported goods and amount to $34 billion. China retaliates by imposing planned tariffs on U.S goods such as soybeans, autos, and pork.
Despite the good news from Europe, today trade wars might escalate in the short-term time frame. Today, U.S indices opened lower with Dow down 40 points after opening bell. Job data come out better than expected with Non-farm payroll logged 213k job compared to 195k expectation. However, the unemployment rate increased from 3.8% to 4.0%.
Traders will focus on trade wars issue and see developments of tariff between U.S and China.
Asian & European Stock market
Asian stock market recovered from previous day loss. Nikkei closed up 241.15 points (+1.12%) to 21,788.14, Shang Hai Composite closed up 12.60 points (+0.46%) to 2,746.48 and Australia ASX 200 up 56.80 points (+0.91%) to 6,272.30. European stock on the defensive before U.S-China tariff. DAX Germany down 0.21%, FTSE UK down 0.39%, and Euro STOXX 600 down 0.26%.
Dow Jones Industrial Average (INDU)
No major movement in Dow Jones Industrial Averages as expected. The index stick near its daily SMA 200 before the announcement of job data today. Traders could expect the index to move sideways until the close of the week. Outlook continues stable between trendline and SMA 200.
Adobe Systems (ADBE)
It is a no-brainer setup in ADBE, and the share prices always bought when it test SMA 50 in the past. Currently, the share prices touch the SMA 50 again. Will the bull continue buying the share at the daily SMA 50?
Bed Bath & Beyond (BBBY)
The retail sector has been the big loser for long-time, it could be seen in BBBY share prices movement. It has been a long time since BBBY hit its daily SMA 200. Yesterday was the first time it hit SMA 200 since the fell below the averages in Dec’17. If the bull could break the averages, then it is possible BBBY will start a new uptrend.