The global stock market on the verge of collapse because of the United States and China
On Tuesday, markets are driven by the escalation of trade disputes between China and the United States. The increase in tariffs and the announcement of retaliatory measures in China sparked a powerful wave of pressure that politicians in both countries tried though as-that to weaken. Now both China and USA in unison support the investors belief that the agreement will be achieved. In the States said that they want to hold public hearings on tariffs, but a senior official of the Chinese side noted that the world’s largest economies “there is opportunity and ability” to conclude suitable to both parties to the transaction.
It is difficult to remember when so powerful was the disappointing dissonance between actions and positive (but pustolovine) statements.
The stock market
Indexes S&P500 and the Dow Jones lost over 2.4% during yesterday’s session. However, this morning they are already somewhat retreated from six-week lows, after the attempts of politicians to restore faith into the same bargain. However, technically, the current dynamics is more like a local short-term rebound than a reversal to growth.
S&P500 is a powerful movement fell under the 50-day average, and such an abrupt break of important levels usually indicates a further movement in the direction of the breakout. The next key support seen at 200-day mA, which passes through the level of 2774.
The single currency once again was thrown down on the way to the MA50, which emphasizes the importance of the resistance. By Tuesday morning the EURUSD fell from 1.1260 to 1.1220, and now through 1.1260 passes as MA50 and the resistance of the declining channel. Growth above this level can indicate a breaking of the descending trend.
However, the continuing tensions in the markets increases the chances of reversal of the pair to the lower limit of 1.05. In the case of aggravation of trade conflicts, EURUSD may aspire to it in may.
The rise of volatility in the stock markets back in focus of investors gold as a defensive asset in times of turbulence. Chart of Gold nervously broke through the resistance of the descending channel at 1285 and up to 1300. In the morning on Tuesday, traders cautiously took profits from a jump of 1.3%, followed by careful shopping at markets. Technically, the rise above 1310 would confirm the breaking of the descending channel and is able to attract additional interest from buyers.
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