· Dow Jones E-Mini Futures Daily Chart
This Dow Jones E-Mini Futures Daily chart suggests the critical Fibonacci level, near $23,100, is a key price support level for the US stock market. Once this level is breached, we believe a new downward price trend will set up quickly and result in a moderately deep downside price move that may retest recent lows near $18,000.
· Stocks Drop as Virus Recovery Begins to Look Distant
Stock markets fell and bonds were in demand on Thursday as worries grew about a second wave of coronavirus infections and a dour assessment from the head of the U.S. Federal Reserve dashed hopes for a quick economic recovery
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1%.
“We don’t think the market is going to re-test the lows, but it’s probably seen its best also, so I’m expecting a correction,” said Tony Huntley, chief investment officer at Melbourne-based fund manager Adansonia Capital.
“The issue is whether we get a second wave (of infections) ... that would be my greatest fear.”
· Japan stocks drop tracking Wall St losses on Powell's dour growth view
Tokyo shares dropped on Thursday, in line with Wall Street, as the U.S. Federal Reserve chairman’s comments about an extended period of weak economic growth offset optimism around the early lifting of Japan’s coronavirus-driven state of emergency in some regions.
The benchmark Nikkei average declined 1.7% to 19,914.78, moving away from a two-month high hit earlier this week.
Wall Street’s three major indexes fell on Wednesday due to worries about a second wave of COVID-19 infections and Fed Chair Jerome Powell’s subdued view on the recovery of an economy battered by the coronavirus pandemic.
· China stocks end lower on concerns of delay in economic recovery
Chinese shares closed lower on Thursday as investors worried about a prolonged recovery in the economy, while awaiting more active stimulus policies to cushion the blow from the COVID-19.
The Shanghai Composite index ended 0.96% lower at 2,870.34.
· European markets slide after warning from the US Fed
European stocks retreated Thursday with investors pausing to digest an economic warning from the U.S. Federal Reserve’s Chairman Jerome Powell.
The pan-European Stoxx 600 dropped 0.8% in early trade, with basic resources shedding 1.3% to lead losses as all sectors and major bourses slid into negative territory.
Declines at the open in Europe come after Powell said Wednesday that policymakers may have to use additional policy weapons to pull the country out of an economic mire that has cost at least 20 million jobs and caused “a level of pain that is hard to capture in words.”
Reference: CNBC, Reuters ,FXEmpire
Thai
Eng