Stock futures tumble as Evergrande fears spread

The global stock market take a hit today after China’s largest property group Evergrande announced to be near default. Asian stock market and European stock market are mostly lower. Traders and investors will continue risk-off following the Fed FOMC meeting this week. At the current time, it is better to stay sideline and monitor the market reaction before deciding to enter the market.

Asian & European Stock market

The Asian stock market is mostly lower. Japan Stock market and China stock market closed, and Australia ASX 200 down 155.50 points (-2.10%) to 7,248.20. The European stock market is also moderately lower. DAX Germany down 2.35%, UK FTSE down 1.71%, Euro STOXX 600 down 1.94%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index is set to fall sharply today as the index futures currently lower more than 500 points. The current situation is fueled by China’s property situation but technically we will have a breakout from the two averages. If the bearish pressure is maintained then the DJIA index might continue lower to target the daily SMA 200.

Realty Income Corp Com (O)

O Share prices might continue its downward movement and target the daily SMA 200 also the horizontal line shown on the chart. Traders could observe the reaction near the averages and the horizontal support level. If there is a major bullish reaction then long positions could be considered.