Optimism brewed cautiously over U.S-China possible trade deal

The fight is not over yet between U.S and China on a trade deal. Recently, president Trump mentioned his optimism on U.S-China trade war. He said both parties will reach an agreement eventually. It helps to boost the market and currently DJIA futures up 20 points.

Aside from the positive sentiment, the EU and Italy are set to have deadlocked over budget. Concern brewing on Italy’s next year budget deficit forecast which will hit 3.5%. The number breach 3.0% limit set by the EU limit. The event should drive fear in the market in the future.

Asian & European Stock market

Asian stock market mostly higher. Japan’s Nikkei up 77.56 points (+0.37%) to 21,260.14, China stock market up 17.53 (+0.61%) to 2,909.91, and Australia ASX 200 up 32.90 points (+0.51%) to 6,484.80. European stock market mixed on Italy – Europe concern. DAX Germany down 0.19%, UK FTSE up 0.30%, Euro STOXX600 down 0.09%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA range of movement is limited between daily SMA 200 and the resistance 26,000. No movement outside of the range yet and DJIA expected to continue ranging between both levels. However, it is possible the index will form the bottom and start rallying.

Illinois Tool Works (ITW)

ITW pullback has not stopped yet and the share prices almost reach the daily SMA 100. It might continue lower to the level around $141.50 or the daily SMA 200 before it starts a bullish reversal. Traders will monitor all the support level and take long positions when bounce happens.

JPMorgan Chase & Co (JPM)

JPM hit the daily SMA 200 and show initial bounce reaction. The share prices might start moving up and test the resistance around $113.00. Traders could look for long positions near the SMA 200.