Wall Street kicks back on trade war headline Turnaround-Tuesday


 

  • DJIA, climbed 382.20 points, or 1.48%, at 26,279.91
  • Nasdaq Composite index climbed 152.95 points, or 1.95%, to 8,016.36.
  • S&P 500 index added 43.23 points, or 1.5%, to 2,926.32.

On Tuesday, positive US-China trade headlines sent the markets risk-on for a turnaround Tuesday that sent US benchmarks screaming higher on Tuesday. Communications between the US and China seem to be back online with a number of headlines confirming that talks were taking place over the phone and arrangements were being laid out for subsequent continuation meetings in September.  Additionally, the Trump administration said it will delay imposing the 10% tariff on some Chinese products until mid-December. Subsequently, the Dow Jones Industrial Average, DJIA, climbed 382.20 points, or 1.48%, at 26,279.91 for the best performance on a single day in two months. The S&P 500 index added 43.23 points, or 1.5%, to 2,926.32. The Nasdaq Composite index climbed 152.95 points, or 1.95%, to 8,016.36.

US data 

The US Consumer Price Index was falling in line with market expectations in July at 0.3% m/m, pushing annual inflation up 0.2%pts from June to 1.8%.

Core inflation (ex food and energy) was a touch stronger than expected, also at 0.3% m/m, which saw the annual measure lift to 2.2% from 2.1% in June. While there appears to be some temporary strength in the details (airline fares, tobacco), two consecutive 0.3% m/m rises for core inflation may give some policy makers cause to believe inflation pressures are a touch stronger than previously assumed. Meanwhile, the US July NFIB Small Business Optimism index almost fully retraced last month’s dip on the back of improved expectations about the economy and business conditions. The temporary trade truce and record stock prices are said to have supported, so it will be interesting to see how August’s read holds up,"

analysts at ANZ bank wrote. 

DJIA levels

The DJIA index found support on the 200-DMA last Wednesday and yesterday's lows were unbreached with a spike to test the doji's highs (a 50% reversion of the late July swing highs to recent lows) which now brings in the start of August levels back into the picture. The 61.8% retracement level is located at 26646 which meets a key area of resistance dating back to April and May of this year.  On the downside, the 20-day and 50-day moving averages are targets in the 26600s. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Ends five-day losing streak, but bias remains bearish

EUR/USD gained 0.19% on Wednesday, snapping a five-day losing streak, however, the outlook remains bearish as the pair is trading well below the former support-turned-resistance of 1.1162 (Aug. 12 low).

EUR/USD News

GBP/USD: Teasing inverse head-and-shoulders breakout

GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time. An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.

GBP/USD News

USD/JPY: 106.50 tested amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resume the bullish momentum in Wednesday's Asian trading and tests the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

Gold News

FOMC Minutes July 30-31 Meeting Preview: The Fed vs the markets

The Fed policy that switched to neutral in Jan completed the circle last month with first decrease in the base rate in more than a decade from a 2.50% upper target to 2.25%. Markets expect a second cut at the September 18th FOMC.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •