“On Wednesday, the US Department of Commerce added Huawei – and 70 other companies – to its “Entity List.” …. Huawei cannot buy parts or components from US companies without the explicit approval of the US government.” (Trivium China)
We are sliding towards a fully-fledged trade war. Following straight after the imposition of tariffs by both the US and China, US action against Huawei will be taken as a direct attack on Chinese industry.
The CCP is already stoking nationalist sentiment to bolster public support.
“Last night and today, CCTV replaced regularly scheduled programming with two films about the Chinese army fighting the US in the Korean War.” (Trivium China)
Market response is so far muted. On the daily chart, the S&P 500 correction is modest. Expect another test of 2800. Breach would offer a target of 2600.
The Nasdaq 100 retreated below its new support level at 7700 but Money Flow remains strong.
China’s Shanghai Composite found support at 2900.
Japan’s Nikkei 225 is ranging between 20000 and 24000. Expect another test of primary support at 20000.
India’s Nifty is testing support at 11000. Respect would confirm the primary up-trend.
In Europe, The DJ Euro Stoxx 600 is undergoing a correction that is likely to test support at 365. But Trend Index above zero continues to signal buying support.
The Footsie found support at 7200, with Trend Index again signaling buying support.
10-Year Treasury yields are testing support at 2.40%. One of the few clear signs that markets are growing increasingly risk averse, as demand for bonds drives down yields.