Renewed tension between U.S-China on trade war
On Sunday, president Trump handed a major blow to U.S-China trade talks to end the trade war. The president said the U.S will implement 25% tariff on 200b China imported goods this week started Friday. Aside from the 200b goods, there will be additional 325b goods inline for the tariff.
China is considering to pull-out of trade talk and retaliate. However, there is a comment that the country will proceed to the meeting on Wednesday but provide no details. The stock market expected to do a roller coaster while awaiting the final conclusion on the U.S-China trade talks.
Asian & European Stock market
Asian stock market underwater today. Japan stock market closed for the golden week holiday, China stock market down 171.87 (-5.58%) to 2,906.46, and Australia ASX 200 down 52.10 points (-0.82%) to 6,283.70. European stock market also marches lower. DAX Germany down 2.00%, UK FTSE up 0.40%, Euro STOXX600 down 1.51%.
Dow Jones Industrial Average (INDU)
Today DJIA futures pointed lower more than 400 points which mean less hope for the index to close the day at the positive side. The index might open near 26,000 support level and continue under pressure the entire day. No suggestion at the current time as we have sudden fundamental change from U.S-China trade war.
If 26,000 broken downside then we expect DJIA to continue lower and reach SMA 200.
Guess Inc (GES)
A bearish close before the share prices hit daily SMA 200 is early indication current bullish movement has lost the momentum. GES might start moving down today, influenced by the global market situation. The level around $18.50 is worth to watch for long positions as the price always pauses near the level when moving near it in the past.