Growth worry rattle the market
Alert on growing trade tension and the impact to the economy put the market on the back seat. We have the Asian market on the positive side however it is only recovering a small part of losses incurred in Monday and Tuesday session. European resuming its weakness as worry overgrowth and Italy move against European budget rules persist.
Rising oil prices are under focus as U.S sanction over Iran diminish supply in the market. The country’s oil export tumble more than expected. In the first week of October, Iran exported 1.1 million bpd (barrel per day) which is lower than the September export of 1.6 million bpd. The number extremely lower compared to April 2.6 million bpd export.
Analyst prompt Brent will top $100.00 soon under shortage of supply.
Asian & European Stock market
Asian stock market recovers from previous day losses. Nikkei up 36.65 points (+0.16%) to 23,506.04, China stock market up 4.82 points (+0.18%) to 2,725.84, and Australia ASX 200 up 8.70 points (+0.14%) to 6,049.80. European stock market continue dragged by Italy issue. DAX Germany down 0.62%, UK FTSE down 0.08%, Euro STOXX600 down 0.33%.
Technical Analysis
Dow Jones Industrial Average (INDU)
The distance of the index from the bottom of the channel getting closer and we expect the selling will continue. Today, DJIA futures dropped 24 points which indicate lower opening. Traders could sit down and wait until the index reaches the bottom of the channel to determine what to do next.
Home Depot Inc (HD)
HD tumble below $200.00 and the bear is driving the share prices down below SMA 50 & 100. We are getting near to the daily SMA 200 where a bounce could happen. When a bullish pattern formed near the averages, traders could jump in a long position with a stop below $190.00.
Lowes Cos Inc (LOW)
The share prices turned lower after it prints fresh high and currently traded near $109.00 where horizontal flip level present. No clear bounce yet from the level and it is possible for LOW to extend the drop toward daily SMA 50 or 100. Traders could prepare for long position when bullish reaction happen.