International Fireworks Celebrate the 4th of July
Morning Briefing Global Stocks
$DIA, $DAX, $DJSH, $N300, $NSEI
Commentary: With the US markets closed for 4th of July celebrations, DJIA was directionless overnight due to lack of participation, but the overriding tone is cautionary with a touch of risk off in the wake of a highly provocative North Korean test of an intercontinental ballistic missile.
A topic that will be atop of the G-20 Summit agenda which begins Friday as North Korea attempts to puts their ICBM and Nuclear-tipped bargaining chips on the table.
The escalation in geopolitical tensions was quickly tempered after Russia and China led the global outcry for both US and South Korea to agree to a Chinese-led deescalation plan.
With cooler heads prevailing, the market quickly retraced the original headline panicked clamoring for scarcely offered haven assets in holiday thinned-trading conditions. Given the immensity of this latest crisis and G-20 Summit looming we have not heard the last on this stuff. PE
DJIA at 21479.27, +0.61% rose sharply Monday testing the Key resistance at 21500-22000. We need a confirmed break above 22000 to further continue The Trump Rally, or the current rise could be considered as the initiation of false hope near term and the index may come off again in the next few sessions. Caution it the watch word in here.
DAX at 12437.13, -0.31% came off last week from important resistance near 13000 and could test to 12000 in case it breaks below 12400. Movement looks Bearish for the rest of this week.
Shanghai at 3191.94, +0.29% remain in sideways consolidation mode as expected, 1st resistance is seen near 3200 which seems to be holding well in here.
Nikkei at 19928.79, -0.52% trades lower, and may test 19700 on the Southside before again trying to move up to 20250. On the weekly, the index is in a sideways consolidation mode within 19700-20250.
Nifty at 9613.30, -0.02% tested 9650 Tuesday, and came down to close at 9613. While it manages to hold above 9615-9625, there is the chance it moves up to 9700 in the next 2 of sessions, at the same time it could fall to 9600. There is no directional clarity. We wait, We watch