January 23, US stock indexes closed a slight decrease, rebounding from session lows. Investors’ concern about uncertainty regarding President Donald Trump’s policy leveled expectations, immediate financial stimulation of the economy, from the US administration Yesterday, fulfilling his pre-election promises, Trump signed an executive order to withdraw the United States from the Trans-Pacific partnership agreement, thus alienating America from their Asian partners. Trump, who wants to ensure the growth of US industry, said he would seek trade deals with countries in a one-on-one format, which would allow the United States to quickly break agreements, in the event of partners’ non-fulfillment of their obligations. On Monday, in the morning meeting with the leaders of big business, including Ford Motor Co. and Dow Chemical Co. Trump promised to cut regulation and cut corporate taxes, warning that he would decide on trade deals that were unfair. Thus, Trump is trying to ensure the growth of job creation in the US and stimulate the economy. Halliburton Co. fell -2.9% after the company reported a drop in profits. Shares of Humana Inc. and Aetna Inc. fell by -2.7% and -2.2% respectively, after reports that the merger between the two insurers was blocked. Stocks Qualcomm Inc. fell 13% after Apple Inc. filed a lawsuit for 1 billion dollars, claiming that the company sought to create unlawful conditions for the acquisition of chips. Oil prices remained stable, after strengthening at the end of last week, caused by statements by officials from Saudi Arabia, that the agreement to reduce production would put an end to excess supply. The Dow Jones Industrial Average closed down by -27.40 points, or -0.14%, at 19,799.85. The S & P 500 fell by -6.11 points, or -0.27%, to close at 2.265.20. The Nasdaq Composite Index closed down by -2.39 points, or -0.04%, at 5,552.94. January 24, Asian stock markets are trading in different directions, trying to assess the impact of new US government initiatives on regional markets. Trump’s recent decisions have negatively affected the shares of key Asian auto exporters. So, in Japan, Mitsubishi Motors lost -1.8%, Mazda Motor lost -2.2%, and Nissan Motor in the red by -1.2%. In South Korea, Hyundai Motor fell by -1.7%. Financial stocks in Japan also declined, as investors rushed to buy sovereign bonds, trying to reduce risks. Nikkei Stock Average fell by -103.04 points, or -0.55%, ending the session at 18,787.99. The S & P / ASX 200 index in Australia rose during the session by 39.13 points, or 0.70%, to close at 5.650.10. The Chinese market has reacted poorly to the US withdrawal from TPPs, as investors felt that this would lead to increased Chinese influence in the region. The Shanghai Composite rose during the bidding by 5.78 points, or 0.18%, to the level of 3.142.55. The Hang Seng Index is growing at 44.04 points, or 0.19%.
USD / JPY: After yesterday’s fall, caused by fears of the protectionist policy of the new US president, the USD / JPY currency pair quotes strengthened slightly, amid expectations of steps to strengthen the US economy from the new administration. The MACD indicator, remaining below the zero line, shows the remaining potential of bears. Quotes remain between MA25 and MA100, making the signals from moving averages not clear. Maturing divergences are not observed in any indicator. Despite a slight correction during today’s trading, there were no technical signals for a U-turn. After yesterday’s breakdown and consolidation of quotations below the level of 114.14 (23.6% Fib), we can expect the continuation of the downward movement, to test the level of 111.35 (38.2% Fib).
AUD / USD: Today, the quotes of the AUD / USD currency pair have slipped a bit, as concerns about the protectionist policy of the new US president leveled expectations of immediate financial stimulus to the economy from the new administration. The MACD indicator continues to decline, approaching the zero line, indicating a return of bears, while the Stoch indicator is in the overbought zone. Moving averages provide mixed signals. The bearish divergence, between quotes and Stoch readings, is still not worked out, and the indicators give bearish signals. In the case of continued decline and breakdown of 0.7541 (61.8%), the bears can start a downward correction to test the level of 0.7468 (50.0% Fib). Trading recommendations. In case of breakdown and consolidation of quotes below the level of 0.7541, sales can be considered, with short stops above the level.
NZD / USD: Today, quotes of the NZD / USD currency pair, after a false breakdown of 0.7246, came back, showing a slight downward correction, against the background of returning expectations, to stimulate the economy, the new US administration, the MACD indicator is falling, remaining above the zero line, indicating a return of bears, while the Stoch indicator is in the overbought zone. The bearish divergence formed between the quotes, the MACD indicator and the Stoch indicator, is still not worked out. After the bounce of quotes from 0.7246 (61.8% Fib), a downward correction can be expected for the level of 0.7172 (50.0% Fib), the breakdown of which will allow the bears to continue the correction to the south, in the direction of level 0 , 7098 (38.2 Fib).
XAUUSD: Again, the level of 1218.88, turned out to be impassable for the bulls, and gold prices began to decline, amid expectations of new measures to stimulate the economy, the Trump administration. The MACD indicator is falling closer to the zero line, indicating the return of bears, while the Stoch indicator crosses level 80, leaving the overbought zone, thereby giving a bearish signal. Quotes of gold could not rise above the MA100, which also speaks in favor of bears. After quotes rebound from the level of 1218.88 (38.2% Fib), we can expect a downward correction towards the level of 182.02 (23.6% Fib).
Review prepared by the analytical department https://www.fortfs.com/en/analytics/review
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