Singapore: STI Index (.STI) skidded lower as U.S.-China trade tensions rose
Asian markets skidded lower Thursday as U.S.-China trade tensions rose, with President Donald Trump saying China “broke the deal” and China vowing to retaliate if the U.. raises tariffs on Friday.
The U.S. is set to raise tariffs on $200 billion of Chinese goods to 25% from 10% on Friday. “You see the tariffs we’re doing? Because they broke the deal. They broke the deal,” Trump said at a rally in Florida on Wednesday night. “They can’t do that, so they’ll be paying.” Still, Trump predicted “it will all work out.”
Beijing will be forced to retaliate if the increases go ahead Friday as planned, China’s Commerce Ministry said Thursday. It gave no details of possible penalties. “China deeply regrets that if the U.S. tariff measures are carried out, China will have to take necessary countermeasures,” said a Commerce Ministry statement.
The Wall Street Journal reported Wednesday night that China had been emboldened to take a harder line on trade talks after comments by Trump — specifically, his attacks on Fed Chairman Jerome Powell to cut interest rates, which China reportedly interpreted as a sign of weakness in the U.S. economy, and a signal that the U.S. was ready to compromise.
China’s Vice Premier Liu He will lead a delegation for ongoing trade talks in Washington on Thursday and Friday, and it is believed to be possible that a final trade deal can still be reached.
China’s latest economic data showed new loans in April at 1.02 billion yuan ($149 million), below both expectations (1.2 billion yuan) and the previous month (1.69 billion).
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,337.29.
The projected lower bound is: 3,202.43.
The projected closing price is: 3,269.86.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 17.3911. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 39.61. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -162.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
STRAITS TIMES closed down -14.140 at 3,269.700. Volume was 7% above average (neutral) and Bollinger Bands were 4% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3,345.68 3,277.51 3,187.76
Volatility: 21 13 15
Volume: 223,187,616 213,812,288 216,152,656
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
STRAITS TIMES is currently 2.6% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 24 periods.