Brexit deadline extension priced in after rejection of proposals
Another deadlock happens in the UK Brexit proposals after the UK parliament blocked Boris Johnson’s proposals and obliged the PM to request an extension of the Brexit deadline to the EU. While it is not good news, it means no “Hard-Brexit” on the card and it seems EU will gladly accept the extension request.
Today, the U.S stock market slightly higher. DJIA pointed upward 30 points and suggest a higher opening. Both U.S and China committed to end current trade wars and expect to sign a deal in mid-November. Traders and investors will thread cautiously this week until the Brexit issue gets an update.
Asian & European Stock market
The Asian stock market mostly higher. Japan’s stock market up 56.22 points (+0.25%) to 22,548.90, China stock market up 1.48 points (+0.05%) to 2,939.62, and Australia ASX 200 up 2.80 points (+0.04%) to 6,652.50. The European stock market also higher. DAX Germany up 0.68%, UK FTSE up 0.13%, Euro STOXX600 up 0.38%
Dow Jones Industrial Average (INDU)
DJIA rejected from 27,000 handles and turned lower last week. The index expected to continue its ranging movement between two trendlines and inside 26,000 – 27,000 range. No change to the situation, at the moment we might see the index stick near 27,000 looking for a breakout.
Travelers Companies (TRV)
Which will happen, a breakout below daily SMA 200 or a bounce? No clue yet, but TRV holding out near the averages. As long as there is no major bearish momentum candlestick below the averages then TRV has the opportunity to bounce from the averages.