The Dow Jones Industrial Average Index continued to track lower yesterday as concerns about the US-China trade negotiations kept market participants jittery. It was down 0.20% or 54.8 points to 27,766.3 by the end of yesterday’s trading.
All eyes are now on US President Donald Trump as the Hong Kong rights bill is passed to him for approval. Given the unanimous support from the Senate and Congress, investors are worried that he may pass the bill into law despite calls from Beijing to veto it.
Proctor and Gamble incurred the biggest loss when it dropped 1.59%, followed by Boeing with a 1.21% loss, and Walgreen which was down 1.17%. On the other hand, Exxon Mobil posted a 2.41% gain.
The Dow Jones Industrial Average Index is curerntly testing support at the rising trend line from connecting the lows of October 3, October 24, and October 31. It could find buyers during market open if the cautious optimism in today’s Asian session spills over. Asian stocks pared some of their losses earlier on news that China has invited US officials over to talk about details of their trade agreement. The news has spurred a bit of risk appetite as it means that all is not yet lost for a US-China trade deal.
If this is the case, the index could once again trade above the 28,000 psychological handle.
On the other hand, if reports from the US disappoint or if risk aversion continue to weigh down sentiment, the Dow Jones could drop to its November 5 highs around 27,268.7.Download our latest quarterly market outlook for our longer-term trade ideas.