Intensifying trade wars rock the market
The global stock market is in full retreat after the announcement of tariff and counter tariff between U.S-China. However, the situation turned fiery as President Trump ordered an investigation of $200 billion of Chinese products for the tariff target. He threatens to add further $200 billion on the line if China retaliates against the additional tariff.
The situation of global market turned sour day by day, and it seems the situation could deteriorate further as U.S and China leader hitting each other with the tariff. We might not see the stop yet until casualties emerge either from the individual country or global economy.
Asian & European Stock market
Asian stock market tumbled today. Nikkei closed down 401.85 points (-1.77%) to 22,278.48, Shang Hai Composite closed down 115.47 points (-3.82%) to 2,906.43 and Australia ASX 200 down 2.00 points (-0.03%) to 6,102.10. European stock market also suffers losses today. DAX Germany down 1.37%, FTSE UK down 0.59%, and Euro STOXX 600 down 0.84%.
Technical Analysis
Dow Jones Industrial Average (INDU)
Dow Jones Industrial Averages futures down more than 300 points which eliminate the bullish scenario in the index. However, traders must always open the bullish option as the market condition could turn to the other side in just several minutes.
On the downside, we expect DJIA index will reach daily SMA 50 today and continue toward SMA 200 while trade wars fear clouding the market.
Caterpillar Inc (CAT)
CAT share prices stuck with the top around $160.00 since March and supported by daily SMA 200. Currently, there is selling happen which bring the share prices near the daily SMA 200. If the trend continues bullish, then we will see a bounce from the averages. Traders could look for long position near the averages.
EBAY Inc (EBAY)
EBAY pushed lower by the bear and hanging near the daily SMA 200. There is an indication of bounce in the previous day as the share prices closed bullish. However, today the market might fall sharply on trade wars issue. Will EBAY take this moment and holding above the daily SMA 200?