News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
  • Nasdaq 100 may hit new high soon. https://t.co/ACtVqiOBl0
  • HSTECH index has likely formed an "Inverse Head & Shoulders" pattern. https://t.co/YFIQEYmuyq
  • The HSI has likely formed a “Double Bottom” chart pattern, which is usually viewed as bullish-biased. https://t.co/wMQ14A867Q
  • When markets are falling, how can you short sell? Learn more here:https://t.co/K4EFd6A6xd https://t.co/ynjtSQqHVy
  • Futures have their own set of characteristics and appeal to different types of traders and investors for a variety of reasons. Get your free trading guide and learn to trade the markets with futures here. Download your guide today!https://t.co/72oKM0kLHL https://t.co/dLBhWmxuub
  • Relative stability in EUR/USD has masked weakness in the Euro against most other major currencies, and that weakness can be expected to persist in the week ahead and likely for longer. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/g6aCr7Uxg2 https://t.co/KZHBa4GXCN
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/Z8oipLero0
  • Gold prices moved higher last week, but an upbeat US retail sales report underpinned Treasury yields on Friday, which weighed on bullion. Chinese Q3 GDP is in focus for XAU traders. Get your weekly gold forecast from @FxWestwater here: https://t.co/L9JstXgjx0 https://t.co/rCikjEv1Fm
  • Equity traders often focus their approach on specific sectors, designed to fit with their approach and style. What sector are you going to target? Read more to find out!https://t.co/5gbiHmY8yl https://t.co/dzRs61zPlt
Nikkei 225, DAX 30, S&P 500 Gap Lower on US-China Trade War Breakdown - US Market Open

Nikkei 225, DAX 30, S&P 500 Gap Lower on US-China Trade War Breakdown - US Market Open

Peter Hanks, Strategist

Nikkei 225, DAX 30, S&P 500 Talking Points:

Nikkei 225, DAX 30, S&P 500 Gap Lower on US-China Trade War Breakdown - US Market Open

Through a series of Tweets, President Trump threatened to escalate the US-China trade war – rattling markets as they opened for the week. “Riskier” currency pairs like the Australian and New Zealand Dollars were first to feel the pressure, followed by Asian stocks and oil. The pain then spread to Europe, and has now reached the United States, resulting in early-morning selling for the S&P 500. With equities on shaky ground, some market participants are concerned the trade war breakdown will contribute to the conditions necessary for a stock market crash.

Nikkei 225

Although first on the scene, the Japanese Nikkei suffered relatively little compared to its German and American counterparts. The Index opened just 145 points beneath Friday’s close, good for its largest gap lower since April 10. That said, the index was able to recapture most of the lost territory after bouncing off support around 22,085.

Nikkei 225 Price Chart: Daily Time Frame (October 2018 – May 2019) (Chart 1)

Nikkei 225, DAX 30, S&P 500 Gap Lower on US-China Trade War Breakdown - US Market Open

Gap measure percent indicator in red

DAX 30

On the other hand, the German DAX suffered its largest gap lower since February 6, 2018. The 240-point move saw the Index plummet beneath the 61.8% Fibonacci level at 12,334 and subsequent support from the upper bound of the recent channel.

DAX Price Chart: Daily Time Frame (January 2018 – May 2019) (Chart 2)

Nikkei 225, DAX 30, S&P 500 Gap Lower on US-China Trade War Breakdown - US Market Open

S&P 500

The S&P 500 was the final major equity market to digest the news and opened 37 points lower. The gap is good for the largest in the year-to-date on a points basis but tied with January 2 on a percentage basis. Beyond 2019, the gap is the largest since December 6, 2018. After last week’s FOMC decision saw the Index break out of its ascending channel, it has twice tested the 2,900 level - a break beneath would open the door lower. To the topside, the S&P 500 must once again negotiate record highs and the 100% Fib level at 2,940.

S&P 500 Price Chart: Daily Time Frame (November 2018 – May 2019) (Chart 3)

Nikkei 225, DAX 30, S&P 500 Gap Lower on US-China Trade War Breakdown - US Market Open

DailyFX Economic Calendar – North American Events

Nikkei 225, DAX 30, S&P 500 Gap Lower on US-China Trade War Breakdown - US Market Open

View our economic calendar here

What’s Driving Markets Today

  1. Dow Jones, S&P 500 Price Outlook: Will Tech Continue the Rally?
  2. DXY Index Breakout in Question as US-China Trade War Uncertainty Rages
  3. Gold Price Fills Gap, Stocks Drop as Trump Bemoans Trade Progress

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES