American market(s) followed Eurozone on the way down, as America-China trade matters compounded EU (European Union) lowered forecast.
President Trump said “Unlikely,” when challenged whether he would reach out to Chinese President Xi Jinping to discuss America's mandated tariffs before the March 1 cutoff date.
Meanwhile, White House economic advisor Larry Kudlow stated “we have got a pretty sizable distance to go here” regarding the current situation of tariffs-trade talks.
To our readers, there was no surprise with an S&P500 25 points drop yesterday as we have shown on our special Market Commentary section.
However, the S&P500 was not alone: the Nasdaq 100 closed 6905 minus around 93 points or 1.32 percent, and DJI closed minus 220 points or minus 0.87 percent, and the Russell 2000 small cap finished at 1506 or minus 0.82 percent.
Not being surprising to notice, the volatility which spiked as with the VIX index passage beyond 16 once again and displaying an upward move with more than over 6%.
On the corporate news side, there was an unusual Mergers and Acquisitions arrangement announcement with BB&T Corp. and Sun Trust Bank Inc. agreeing on a $66 Billion merger package that will amount to the sixth largest position of American banks established on deposits and assets basis.
With the significant Asian market(s) closed, the Japan Nikkei225 yet again was the central focal point. The Nikkei index moved up as we saw substantial capital flows move into Japan. The Yen currency also faded to upper 109 handle.
The Indian Sensex index delivered reasonably well this week advancing 2.38 percent. The Year-On-Year for the Sensex index is 7.86 percent so far.
The great performer of the trading day was the Aussie ASX 200 index, climbing 1.1 percent, which came about after Reserve Bank of Australia governor stated concerns regarding economic risks in the Asia-Pacific region and nodded a possible interest rate cut is on the table.
It was not so great over in the Eurozone market as the stocks took quite a beating, notably the German DAX30 index. The DAX30 index lost 2.33 percent in a single trading session.
This transpired on the back of the European Central Bank and the Bank of England revising growth forecasts for the European Union region. The Bank of England sees possibly the weakest prospect since 2009, and the European Union decreased growth expectations from 1.7 percent to 1.2 percent.
The bulk of the primary Eurozone markets took a tumble, while the Milano Indice di Borsa and the Spanish IBEX 35 were notable at 2.6 percent and a 1.8 percent drop respectfully.
French and German economic ministers have acknowledged reforming the European Union competition legislation, which came up following the recent block of an Alstrom and Siemens venture to conceive a “rail champion.”
The news announcement hit the Euro Dollar as it declined only 23 pips. The British Pound, on the other hand, improved 21 pips as it recently spiked to our Key Support and staying under 1.30 handle.
The technical predicaments for the market next week is simple enough: It is evident that the 'BTFD' masses should not get rich too quickly, so a significant decline into the upcoming week is undoubtedly a probability.
This article was printed from TradingSig.com