Resurface tension with China to weight the market

DJIA futures traded lower more than 150 points at the current time. The weakness of the index happened as covid cases continue to increase to a record high. Meanwhile, the Trump administration considering blacklisting Chinese chipmaker SMIC and CNOOC, the offshore oil and gas company. The move is expected to reignite the tension between U.S and China before Biden enters the office.

It seems the market might start to pullback while coronavirus cases continue to increase at an alarming rate.

Asian & European Stock market

The Asian stock market mostly lower. Japan stock market down 211.09 points (-0.79%) to 26,433.62, China stock market down 16.55 points (-0.49%) to 3,391.76 and Australia ASX 200 down 83.30 points (-1.26%) to 6,517.60. The European stock market mixed. DAX Germany up 0.35%, UK FTSE up 0.13%, and Euro Stoxx600 up 0.02%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA reached the 30,000 milestones and no major bearish reaction yet. The index might continue to stick near the 30,000 and will attempt to further its bullish movement. At the current time, traders will continue to hold long positions in equity and waiting for further reaction near the top.

Exxon Mobil (XOM)

Last month we mentioned the possibility of oil price recovery and bounce in the oil-based companies’ share prices. XOM has made a bounce as mentioned in the previous month’s analysis. At the current time, the share prices are trading near the daily SMA 200 and the horizontal line.

If the global market recovery continues as vaccine distributed globally then XOM might breakout above the averages and continue upward to $50.00 or higher.