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The Dow Jones Industrial Average looks like it is gearing up for another push higher. The US equity index comprised of the largest 30 domestic companies rose back above major confluence around the 78.6 percent Fibonacci retracement line drawn from the respective high and low in October and December of last year.

Moreover, DJIA was able to reclaim its 20-day simple moving average this week which could further support additional upside over the near-term. Although the longer-term downtrend extended from the Dow’s high in October 2018 as well as February and March 2019 might serve as resistance and squeeze the index lower, bullish sentiment looks to outweigh this headwind.

· European stocks jumped Monday morning, as investors in Europe digested stronger-than-expected Chinese data.

The pan-European Stoxx 600 was 0.8 percent higher with every sector in positive territory.

Basic resources were the outperformer, up by more than 2 percent. The sector was reacting to positive data out of Beijing. Manufacturing activity numbers showed an increase in March after three months of decline, suggesting a rebound in economic activity. China is the second largest economy in the world and any indication of a slowdown tends to worry investors about the overall prospect of the global economy.

· Asian stocks rallied on Monday as positive Chinese factory gauges and signs of progress in Sino-U.S. trade talks supported sentiment, although another defeat for British Prime Minister Theresa May’s proposed Brexit deal added to sterling’s woes.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 1 percent and the Shanghai Composite Index rallied 1.7 percent.

The markets took heart after China’s official purchasing managers’ index (PMI) released on Sunday showed factory activity unexpectedly grew for the first time in four months in March.

· Japan’s Nikkei rose on the first day of the new fiscal year on Monday as hopes for U.S.-Sino trade talk hopes and factory activity surveys lifted China-related stocks, helping to offset weak domestic corporate sentiment.

“The new era name is creating a festive mood in general,” said Yutaka Miura, a senior technical analyst at Mizuho Securities.

He said that while some investors look to rising consumption during the Golden Week holiday, others, foreign investors in particular, are cautious before the unprecedented 10-day public holidays, which will run from late April to early May.

The Nikkei share average ended 1.4 percent higher at 21,509.03.

· China stocks jumped on Monday with the Shanghai Composite Index hitting its highest in 10 months, while blue-chips touched a one-year peak, on long-awaited signals of an economic recovery and the progress in Sino-U.S. trade talks.

The Shanghai Composite Index closed up 2.6 percent at 3,170.36, its highest point since May 2018.