U.S-China trade deal under focus

DJIA futures fall 49 points indicating lower open today as the market focus on U.S-China trade deal development. Earlier, the U.S said will implement tariff against North Korea if the country fails to comply denuclearization. The move happens after the country started rebuilding its dismantled nuclear launch site.

On the economic front, traders will observe ADP employment data with forecast 190k job added in last month.

Asian & European Stock market

Asian stock market boosted by China stimulus. Japan stock market down 129.47 points (-0.60%) to 21,596.81, China Shanghai Composite up 47.85 points (+1.57%) to 3,102.10, and Australia ASX 200 up 46.30 points (+0.75%) to 6,245.60. European stock market mixed. DAX Germany down 0.29%, UK FTSE up 0.09%, Euro STOXX600 down 0.08%.

Technical Analysis

Dow Jones Industrial Average (INDU)

Yesterday, the index made not much movement, traded between 25,725 – 25,877 or inside 152 points range. In the end, the index settles inside 25,800 – 26,000 range and expected to continue its sideways movement. At the current time, there is nothing to do.

3M Company (WMT)

MMM climbed above daily SMA 200 and continue higher to test the level around $210.00 before turned lower. The share prices might continue its downward movement until it reaches the daily SMA 200. If the share prices respect the support level then we could expect MMM to bounce and rallying to make retest on $210.00.

Nucor Corp (NUE)

We could see NUE share prices consolidated near daily SMA 200 and the top trendline. Also, there is a triangle pattern on the daily chart. Currently, NUE is trading inside the triangle and waiting for a breakout. We favor upside breakout, but it is better to wait for a price close above the averages before jump in long positions.