S & P 500 and Nasdaq rise to new high – BorneoPost Online Borneo, Malaysia, Sarawak Daily News



Fundamental outlook

TECHNOLOGY stocks rose to new heights, pushing the S & P 500 and Nasdaq to record levels.

President Donald Trump was given the opportunity to be deposed after two former advisers were found guilty of criminal acts. US property data rose, but it was still below the forecast. The British net credit supply by the government declined.

Existing home sales in the US rose 5.34 million in July, lower than forecast and the previous month. Sales of new homes grew by 627 million in July, the lowest in five months and below expectations.

The US order for durable goods fell 1.7 percent in July, worse than expectations. Excluding transport equipment, the core order rose by 0.2 percent, while the prognosis was lacking. On Friday, S & P 500 and Nasdaq Index closed at a record high when technology shares such as Netflix spiked upwards.

President Trump said the government plans to apply 25 percent rates to all car imports from the European Union (EU). He also expressed disagreement about higher interest rates that were reinforced by policy makers from the central bank.

Two former advisers from the Trump administration, Paul Manafort and Michael Cohen, were found guilty of criminal acts related to tax fraud and Russian agents and could bring President Trump into impeachment. Trump defended himself on national television and said that he has done a good job so far, while he threatened the stock market to crash if he was deposed.

The industrial index of the euro zone rose by 54.6 in August and the service index grew by 54.4 in the same month. German industry index rose 56.1, which led to expectations being lost.

UK government funding fell by 2.9 billion pounds in July, an improvement from 3.3 billion pounds in June. The industrial order expectations of the CBI grew to seven, less than the previous month.

Technical prediction

US dollar / Japanese yen was in strong demand last week and closed at an almost intra-week summit. This week we thought that the range would be traded in a limited range between 110.50 and 111.50, but penetration beyond the extreme extreme will lead to a new directional progress. Risk management is advised for a high probability of an upward trend.

Euro / US dollar was in a slight demand last week. This week, the trend from 1.1550 to 1.1650 could be curtailed in anticipation of an outbreak.

The Dollar Index will be a crucial factor in leading a reverse trend towards the euro. There are no significant indications as to where the market is going and as such risk control for traders is recalled.

The British pound / US dollar traded sideways as both the euro and the dollar became higher. This week we predict that the trend will be uncertain and will initially range from 1.28 to 1.255. Traders are becoming cautious and are now waiting for a possible outbreak before they choose a position on the market.

Disclaimer: this article is only written for general information. No liability of the writer, publisher or a third party involved in the distribution of this work. Dar Wong is a registered fund manager in Singapore with 29 years of global trading experience. You can reach him on [email protected]

What do you think of this story?

  • Angry (0%)

  • sad (0%)

  • Nothing (0%)

  • Interesting (0%)

  • excellent (0%)


Source link

Leave a Reply