Wall Street, Dow Jones, S&P 500, Composite Nasdaq – Opening of the Asia-Pacific market
- Market sentiment recovered on Friday Wall Street To close
- Trump squeezes on China overwhelmed escalation concerns
- Dow Jones, S&P 500, Nasdaq Composite peeping at more heights?
The Dow Jones, S&P 500 and Nasdaq Composite soared on Friday after temporarily moving into the red. The former still closed the day at -0.07% while the latter two closed respectively at + 0.48% and + 1.29%. This change in sentiment weighed against the anti-risk Japanese Yen while the growth Australian dollar followed the rise in global equities.
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Investors were impatiently waiting on Friday press conference on China. This was in response to the latter’s approval of a security bill for Hong Kong. In fact, sentiment worsened during the morning’s North American trade, with the White House weighing sanctions against the Chinese financial sector. Perhaps worried that the Trump administration could also raise tariffs worry traders.
In the end, it seemed that the worst-case scenario taken into account by the markets had been avoided for the time being. For one thing, reports have run through the threads that Trump was not planning to leave the phase 1 trade deal. He previously announced that the country revoke Hong Kong preferential treatment status. The stock markets applauded his bail, sinking the haven oriented US dollars.
Monday’s Asia-Pacific negotiating session
With this in mind, stocks in the Asia-Pacific region could follow the positive trend on Wall Street to start the new trading week. Gains in the Japanese benchmark Nikkei 225 and Australia ASX 200 can offer support for the Australian dollar and New Zealand dollar.
This could be done at the expense of the US dollar and the Japanese yen. Caixin China, maker of PMI (May), will cross threads later today. The data could reveal a glimpse of how the economic recovery is proceeding in the second largest economy in the world.
Wall Street Technical Analysis
Below is a 4 hour chart of my Wall Street Index which averages the Dow Jones, S&P 500 and Nasdaq Composite futures. Prices failed to confirm a breakout under key upside support from mid-May – pink lines. This leaves the index facing peaks compared to last week as US stocks attempt to reach peaks from March on average. Keep an eye out for RSI which could reveal a negative discrepancy, a sign of discoloration.
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Wall Street Index – 4 hour chart
— Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
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