News & Analysis

Trade Comments lift risk markets; US30 and AUS200 jump; but will it last?

Oct 30, 2018 | CFD News

U.S China trade returned to focus last night and during today’s Asian session. Worries around new tariffs contributed to another weaker session for U.S stocks last night. Sources showed the US is planning tariffs on a remaining $275 Billion in Chinese goods if the current trade talks between President Trump and President Xi where to fail. The new round of taxes against goods from China could occur as early as December and target the rest of the imports from China, about $257 billion worth, per the report. Stocks fell immediately after the news hit.

In another turn of events during today’s Asian session stocks jumped after a comment from President Trump hit the markets, President Trump: Predicts ‘great deal’ with China on trade. This comment lifted risk markets, the ASX200 which started the day lower closed 76.90 points higher. The US30 CFD is trading 170 pts higher pre US session. Could this be the spark the market is waiting for to mount a recovery? Positive yes but traders should still be cautious.

Looking below at the AUS200 and US30 daily charts.

AUS200 – support stands at 5638 with resistance presenting from 5790. Today’s rally has broken the fast downtrend.  A new higher low would start to buyer commitment.

US30 – last night’s failed low that bounced of 24,130 support is interesting price action that stands out. 24,380 is another support point. 24,620 is currently seen as short-term resistance. With sellers starting to fade will we see today’s buyer interest continue through tonight’s US session breaking the current two-day losing streak?

Sources CNBC – All times are AEDT

* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.

 

 

 

 

 

HEAD OFFICE

Level 6, 360 Collins Street
Melbourne, VIC
3000 Australia

Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with EightCap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment). A Product Disclosure Statement (PDS) and a Financial Services Guide (FSG) for our products are available to download from our Legal Documentation page. You must assess and consider them carefully before making any decision about using our products or services.

EightCap is a registered business name of EightCap Pty Ltd (ABN 73 139 495 944). We are regulated by the Australian Securities & Investments Commission (ASIC) - our AFSL number is 391441. This licence authorises us to provide financial services to people in Australia.

The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. EightCap is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.