The escalating trade tensions are pushed back into the spotlight, and the markets are feeling it! The S&P 500 declined over 1.5% along with the other major Indices. Asian markets were also lower on Wednesday as the trade negotiations approaches.
The latest tit-for-tat strategy imposed by both nations will only see relations between the two largest economies deteriorate further. Here are some of the latest tit-for-tat developments ahead of the trade talks in Washington:
- The U.S blacklists eight Chinese tech firms.
- Chinese state Television drops the National Basketball Association (NBA) pre-season games along with local firms suspending sponsorship.
- The U.S slaps visa bans on Chinese officials linked to the detention of Muslims in Xinjiang.
Fed meeting minutes
Tonight 20:00 SAST, we will see the release of the Federal Reserve’s meeting minutes for the September meeting. This might give us some insights into why the Fed decided to cut interest rates for a second time this year. Fed chair Powell indicated on Tuesday the Fed will address the recent strains in money markets and left the options open for interest rates ahead of the next sitting.
Wall Street 30
Wall Street might remain under pressure while the world gets clarity on the pending trade negotiations in Washington. Take note that Volatility is expected over the next couple of sessions and that U.S markets are still in a downtrend.
Technical points to look out for on Wall Street 30:
- The 26430-support level did not hold yesterday and will act as major resistance in the coming sessions.
- The 50-day SMA is also above the price action, which supports the move lower.
- The next line in the sand would be the 25957-support level to watch. A break from this level lower would possibly target 25500.
- The RSI is also pointing lower and is below the halfway mark heading towards oversold.
Source – Bloomberg
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.