- The Dow has started the day on the defensive.
- Renewed trade concerns weigh on equities on Wednesday.
- Fed’s Powell will testify before Congress later in the day.
The US stocks benchmark opened the Wednesday’s trading on the back footing, retreating for the first time after three consecutive daily advances, including an all-time closing high.
Dow Jones Price Index weighed down by trade, looks to Powell
Trade jitters and scepticism among traders have resurged following President Trump’s speech on Tuesday, when he failed to provide markets with extra details on the ‘Phase One’ deal negotiations, the potential roll over of some existing tariffs and his meeting with China’s Xi Jinping.
These renewed trade concerns have been weighing on the riskier assets since the beginning of the trading session in the Asian markets and extended throughout the European trading hours, all turning into extra oxygen to the safe havens like the Japanese yen, gold and bonds.
In the meantime, the Dow is expected to trade on a cautious tone ahead of the testimony by Fed’s J.Powell to the Joint Economic Committee later today and to the House Budge Committee on Thursday.
In the meantime, the Dow is losing 0.17% at 27,643.5 and faces the next interim resistance at 27,774.7 (all-time high Nov.7) while on the downside the next interim support emerges at the 10-day SMA at 27,522.0 seconded by July’s high at 27,398.7 and then the September peak at 27,306.7.
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