US equity markets are being led lower by the tech-heavy USA100 which is down 1.17% within 30 minutes of the open today. Yesterday’s sell-off, triggered by the ISM data and Trump tweets regarding Latin American Steel imports, is being compounded and accelerating from more Trump comments that the US-China trade deal (even Phase 1) may not be signed until after the 2020 US elections in November. Reports from Fox News (the President’s favourite media outlet) are also swirling that the December 15th tariff hikes on the final range of Chinese imports in the US (which the markets had been anticipating were not being implemented) are still planned and scheduled. However, “if Phase One trade deal gets on paper or something else positive happens the President could choose not to impose tariffs” – Edward Lawerence Fox News.
Yesterday saw all the key global equity markets either testing or breaching the key 20-day simple moving average, spurring profit taking from the September-November rally. The USA100 broke the 20-day moving average October 11, representing a 36 consecutive day rally to all-time highs over 8540. Today’s close will be key for further direction.
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