China trade war fears swept across international markets leading to today’s sharp sell-off in the Dow Jones industrials index.
For several weeks, trade tensions have increased as the U.S. and China raised tariffs on each other’s goods, and the U.S. placed restrictions on U.S. companies in business with Chinese technology company Huawei.
The latest sign of worsening trade tensions came when the spokesperson for the Chinese Ministry of Commerce said the US had to stop taking action against China businesses and signaled a further intensification of the trade dispute.
On the technical side – the index is still declining inside the medium-term correction (2) – which started earlier from the major and multi-month resistance level at 26700. The same level capped price in early and late 2018. The next logical support stands at 25230.