The stock market lower as stimulus deal negotiation on progress
The blow caused by coronavirus has brought the stock market around the world down averaging 30%. Today, the lawmaker in Washington is negotiating a deal on stimulus to help cushion a downturn in the economy caused by coronavirus.
Although the bill most likely will pass, we might have a temporary bullish reaction in the market. Coronavirus problem has not solved and will put the economy under more stress without any solution.
Asian & European Stock market
The Asian stock market on the bearish path. Japan’s stock market up 334.95 points (+2.02%) to 16,887.78, China stock market down 85.45 points (-3.11%) to 2,660.17 and Australia ASX 200 down 270.60 points (-5.62%) to 4,546.00. The European stock market also tumble. DAX Germany down 2.92%, UK FTSE down 3.86%, Euro STOXX600 down 3.97%
Dow Jones Industrial Average (INDU)
No hope for bullish reversal yet in DJIA today. The index futures pointed lower more than 400 points and suggest further weakness below 20,000. Coronavirus cases in the U.S jumped at an alarming rate surpassing the infection rate in Spain. Without any significant positive development in coronavirus cases, expect further weakness in the stock market.
Caterpillar Inc (CAT)
CAT share prices under major bearish pressure and soon will reach the monthly SMA 200. It seems the share prices will continue moving further lower and put the share prices into a bearish trend. Traders could look to enter long positions below the averages when there is a bullish reaction.