Huawei ban send jitter to the market
U.S stock market futures significantly lower before the opening bell, driven by Chinese technology company ban by President Trump administration. On Sunday, Alphabet (NASDAQ: GOOG) joined the crowd to revoke Huawei’s Android license and put the company in the blacklist.
Today, the Fed Jerome Powell due to give a speech on 07.00 PM EST.
Asian & European Stock market
Asian stock market mixed. Japan’s Nikkei up 51.64 points (+0.24%) to 21,301.73, China stock market down 11.69 (-0.41%) to 2,870.60, and Australia ASX 200 up 110.80 points (+1.74%) to 6,476.10. European stock market drop on Huawei ban. DAX Germany down 1.45%, UK FTSE down 0.93%, Euro STOXX600 down 1.12%.
Dow Jones Industrial Average (INDU)
DJIA manage to bounce from the daily SMA 200 and maintain the level above it in the previous week. The index rejected near the 26,000 resistance and might start the week lower. Currently, DJIA futures down 121 points. We expect the index to consolidate between SMA 200 and 26,000 until breakout happen. Meanwhile, expect the bear to hold control while trade tension between U.S-China continues to grow.
Boeing Co (BA)
Boeing trouble might last for short and medium-term. The company will undergo a crucial test on the 737 lines. Further ban this week should push the share prices lower. Traders and investors might bring share prices near the SMA 200 before the announcement. Next direction will depend on the result and we think more bearish movement on the card.