News & Analysis
Trade Comments lift risk markets; US30 and AUS200 jump; but will it last?
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.
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
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