- As a result of trade-wars, the Dow was off more than 700 points at its session low
- Hong Kong’s Hang Seng index led plunged 3.22% in early trade; The Nikkei 225 in Japan fell 2.33%
The Nikkei and Asian stocks in general have been in a sea of red following the poor end to the week last week on Wall Street following an escalation in the U.S.-China trade war late last week. Hong Kong’s Hang Seng index led losses in the region as it plunged 3.22% in early trade.
U.S. President Donald Trump tweeted last Friday that America will hike tariffs on $250 billion worth of Chinese goods to 30% from 25%. Beijing unveiled new tariffs last Friday on $75 billion of U.S. goods.
As a result, the Dow was off more than 700 points at its session low marking the first downside target for the week ahead but ended the session on Friday down 623.34 points, or 2.4%, at 25,628.90. The S&P 500 index dropped 75.84 points, or 2.6%, to end at 2,847.11 while the Nasdaq Composite Index lost 239.62 points to end at 7,751.77, a loss of 3%.
Asian stock crumble
Hong Kong’s Hang Seng index led plunged 3.22% in early trade. The Shanghai composite shed about 1.2% and the Shenzhen component slipped 1.15%. The Shenzhen composite also fell 1.308%. The Nikkei 225 in Japan fell 2.33% and Australia’s S&P/ASX 200 shed 1.54%. Overall, the MSCI Asia ex-Japan index declined 2.02%.
The focus is on US stocks and the long term downside targets
1915 to date Fibonacci retracement measure marks the 23.6% at 21000 – below the Dec 2018 lows of 21712. The 21-monthly moving average is located at the May and Jun lows in the 24700s as a double-bottom target. The 23.6% Fibo’ of the March 2009 swing lows to all-time highs is located in the 22,200s.
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