Trade war prospect brought futures down

U.S stock market is on the backfoot following the jitter of a trade war after President Trump plan to impose steel import tariff. The President also threaten Europe with autos tariff over the weekend should European Union attempt to counter against the U.S.

Aside from the trade war issue, Italian election news also provide high uncertainties. Traders attention will be directed to ISM Non-manufacturing data today, analyst forecast reading of 58.90.

Asian & European Stock market

Asian stock market slipped today. Nikkei down 139.55 points (-0.66%) to 21,042.09, Shang Hai Composite up 3.00 points (+0.09%) to 3,257.53 and Australia ASX 200 down 33.90 points (-0.57%) to 5,895.00. European stock market notched gain today. DAX Germany up 0.88%, FTSE UK up 0.25%, and Euro STOXX 600 up 0.66%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA is on the verge of breaking down below the daily SMA 100. The situation is more apparent since previous week announcement on possible four interest-rate hikes. The Fed planned three rate-hike this year, but Jerome Powell hawkish comment opens up the chance for four interest-rate hikes.

If the sentiment continues, then we might see DJIA fall to the daily SMA 200.

The Mosaic Co (MOS)

MOS experienced correction after the share prices hit a level near $29.00 – $30.00 area. Currently, it sits at the daily SMA 50 and looking for an upward bounce. Traders could look for a long position with a stop below $25.00.