Mixed sentiment to continue cloud the market

The global stock market mostly higher today following the U.S tech sector rebound yesterday. Better than expected earnings reported by companies which boosted the sentiment. However, the coronavirus stimulus situation continues at a stalemate without any deal yet. The Fed Jerome Powell reiterated his stance and urge congress to support the stimulus bill otherwise the economy will start to decelerate.

Today, the market will focus on Jerome Powell’s speech before the House Select Committee regarding the impacts of COVID-19 on the economy.

Asian & European Stock market

The Asian stock market mostly higher today. Japan stock market down 13.81 points (-0.06%) to 23.346,49, China stock market up 5.41 points (+0.17%) to 3,279.71 and Australia ASX 200 up 139.80 points (+2.42%) to 5,923.90. The European stock market also continues higher. DAX Germany up 1.28%, FTSE UK up 1.33%, Euro STOXX 600 up 0.87%

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bounced from the 27,000 handles yesterday but no close above daily SMA 50. At the current time, the index futures are higher 124 points which indicate further bullish movement later. We think the index direction will continue bearish until it reaches daily SMA 200 or 26,000 handles.

Berkshire Hathaway Inc (BRK/B)

BRK share prices bounced from the level near-daily SMA 200 and printed higher high on the daily chart. Recently, the share prices made a bearish correction and reach the level near-daily SMA 50. We think the share prices will continue further lower and reach the daily SMA 200 before it starts moving higher again.