World Markets Fell This Week, Investors Fear Trade Wars

World Markets Fell This Week, Investors Fear Trade Wars

World Markets Fell This Week, Investors Fear Trade Wars

$DIA, $SPY, $QQQ, $VXX

The world’s stock markets fell Friday on investor fears that a trade conflict between the US and China might would escalate.

A 3nd day of losses pushed US stocks to their worst week in 2 years.

So far, China’s response to the tariffs President Donald Trump announced this week was muted saying it would defend itself.

The Chinese government said it might place tariffs on a $3-B list of U.S. goods such as pork, apples and steel pipes, a response to the tariffs on steel and aluminum imports that President Trump announced earlier this month.

INDUSTRY WATCH
Strong: Energy, Industrials, Consumer Staples, Utilities, Telecom
Weak: Financials, Technology

Tech companies after having made huge gains over the last year are getting hammered, since they do so much business outside the US, investors see them as vulnerable to the effects of a trade dispute.

There will likely be a bounce as the markets are oversold, and the sides start to negotiate. There could be further decline if investors get a sense there could be more trade restrictions coming and bank profits and move to the sidelines and wait for buying opportunities.

Financial institutions took losses as interest rates declined. Rates climbed earlier this week after the Fed raised rates 1/4 pt, but then fell after the tariffs were proposed. If the tariffs and counter-tariffs reduce economic growth in the US, the Fed is likely to turn very Dovish, and raise rates at a slower pace.

Savvy analysts now see areas in the market with the greatest potential for earnings improvement this year are small and mid-cap stocks, as they that have the biggest benefit from tax reform and are less subject to trade issues.

Friday, the major US stock market indexes finished at: DJIA -424.69 at 23533.20, NAS Comp -174.01 at 6992.66, S&P 500 -55.43 at 2588.26

Volume: Trade on the NYSE came in at: 990-M/shares exchanged.

  • NAS Comp +1.3% YTD
  • S&P 500 -3.2% YTD
  • DJIA -4.8% YTD
  • Russell 2000 -1.7% YTD

HeffX-LTN’s Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
23 March 2018 QQQ 161.52 Neutral (-0.09) 161.25 162.59
23 March 2018 DIA 238.67 Bearish (-0.28) 238.32 243.28
23 March 2018 SPY 262.29 Bearish (-0.30) 259.11 266.41

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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