Dampened trade hope to drive the market

In the previous week, China’s official said that both the U.S and China have agreed to remove tariffs as phase one trade deal requirement. But, President Trump commented that the U.S has not agreed to lift tariffs on China’s products. The event signaled uncertainties to the market and the stock market started moving lower.

Today, the DJIA index set to open lower as the futures down more than 100 points. The demonstrations in Hong Kong also put the market on the back foot. Traders will wait for further announcements on trade development this week.

Asian & European Stock market

The Asian stock market mostly lower on trade news and Hong Kong protest. Japan’s stock market down 60.03 points (-0.26%) to 23,331.84, China stock market down 54.21 points (-1.83%) to 2,909.97, and Australia ASX 200 up 48.40 points (+0.72%) to 6,772.50. The European stock market also under pressure. DAX Germany down 0.40%, UK FTSE down 1.20%, Euro STOXX600 down 0.32%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA hanging near the fresh high and might continue its upward movement. However, the index might pulled-down today as the index futures down more than 100 points before the market open. A pullback toward the trendline or 27,000 might happen as tension return to the market.

Shopify Inc (SHOP)

SHOP share prices bounced from the daily SMA 200. It is the initial confirmation of the bullish reversal. If the share prices could continue higher and close above $300.00 handle then SHOP could continue moving upward. On the other hand, if the share prices tumble below the daily SMA 200 then it could resume the bearish trend.