Trading room – Mon 10 Dec 2018
Stocks dropped sharply on last Friday in US after a major rebound from the lows on Thursday, concluding what has been a wild week for Wall Street.
A weaker-than-expected jobs report and China-U.S. trade tensions sent the Dow Jones Industrial Average lower by 558.72 points to 24,388.95 and erased its gains for the year.
At one point, the Dow was up more than 8 percent for 2018.
The S&P 500 pulled back 2.3 percent to 2,633.08 and also turned negative for the year. The Nasdaq Composite dropped 3.05 percent to close at 6,969.25.
For last week, all the major US indexes all dropped more than 4 percent. Thursday’s session included a violent drop of nearly 800 points, followed by a strong rebound from those levels.
Last week was also the worst for US indexes since March.
In Europe, stocks recovered some ground last Friday, after slumping to at
Asian stocks took a breather after days of declines last Friday but most Asian markets were down for the week.
What is the outlook for the major global markets this week?
Key global markets performance to-date 2018
Some of the likely lingering concerns include uncertainties over the US-China trade spat truce with the news of the arrest of Huawei CFO Meng Wanzhou in Canada, which was thought to have hit tech stocks in the region.
Other developments include the conclusion of the closely watched OPEC meeting in Vienna on last Thursday, where the cartel reportedly agreed to decrease oil production but did not specify the exact number of barrels it aimed to bring off the market.
The much-anticipated meeting came at a time when the oil market is near the bottom of its worst price plunge since the 2008 financial crisis.
Oil prices have crashed around 30 percent over the last two months, ratcheting up the pressure on budgets in oil-exporting countries.
Some good news to the US and global markets could come from news that the U.S. Federal Reserve could hike interest rates at a slower pace than previously expected.
The Wall Street Journal reported on last Thursday that the U.S. central bank is considering whether to signal a wait-and-see approach to rate hikes at its upcoming meeting this month.
The report said Fed officials do not know what their next move on rates will be after December.
Has the US market hit a short-term bottom, which will likely attract buying interest in the Europe and Asian markets as well?
What are the medium and long-term trends for the global markets and the local FBM KLCI in particular?
At the current juncture, it is clear that there are some major critical levels that are dictating the market outlook for a number of the global major indices worldwide.
Elite traders should take note once these critical levels are crossed in a number of these markets in unison as shown in our mPower Algorithm report.
For traders and institutional funds who trade internationally, which are the strongest regional markets you should be focused on right now?
The opportunities will come fast for those who plan in advance and act at the right level and timing.
Critical levels and indicators for key global markets