DOW JONES FALLS AS U.S. WEIGHS DELISTING CHINESE FIRMS
DJ 30 futures are currently trading at 26691-lower by 0.71% as compared to the previous close. The contract closed in the negative territory in the last trading session also.
In the Cash Markets, the DJIA lost about 119 points at the time of writing.
U.S. equities retreated today after reports that the White House was considering limits on U.S. investments into China, increasing trade tensions between the two economic powerhouses.
According to market sources, U.S officials were discussing ways to curb the country’s financial exposure in China. The U.S. President’s administration was also considering delisting Chinese companies from U.S. stock exchanges.
The 30-stock index reversed an early gain of around 130 points following the report. Boeing was the worst performer in the benchmark index, down 1.25%.
Other top-losers in the DJIA include Microsoft (down 1.76%), Visa (down 1.65%), and Walt Disney (down 1.40%).
Meanwhile, the U.S. and China will resume trade talks on October 10-11 in Washington, D.C.
A spokesperson for the Chinese Ministry of Commerce said on the previous day that the country had bought a considerable amount of American soybeans and pork.
The DJIA was set for a week-to-date loss of about 0.2%. The benchmark index snapped three-week winning streaks at the close of last week.
On the economic front, Core Durable Goods Orders (MoM) for August released earlier today came in at 0.5%. Orders growth was above the consensus estimates of 0.2%. In addition, the Core PCE Price Index (MoM) for August also released earlier today came in at 0.1%. The index change was below the market expectation of 0.2%.
On the technical front, the RSI is currently at 47.11% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 97% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 26725, Take Profit At 26625 Stop Loss At 26775