US markets tumbled on news of High Unemployment Claim

Stimulus package

Let's explore the reason for falling US markets

  • Weekly jobless claim 1.3 million slightly worse than expected.
  • Rising US & China tension is source of worry on equities.
  • US markets are hopeful from further stimulus to support the economy.
  • Asian markets are trading high on this hope on Friday.
  • SGX Nifty is in positive note this morning. (8:00 A.M.)

wall street

Why US markets are trading in red?

  • US markets are facing high corona cases with average number of cases at 60000 per day. This has resulted in restricting the economical activities there and that is the reason that the weekly unemployment claim is high in the economy.
  • Yesterday weekly unemployment number came at 1.3 million worst than expected and markets tumbled due to this reason.
  • Silver line for the market that sooner the Trump administration will issue further stimulus package to support the economy from unemployment. This is positive development and that is why Asian markets are trading positively this morning.
  • A key risk to equity is worsening US & China relationship. US is planning to put travel ban on all members of Chinese Communist Party.
  • Dow Jones Industrial Average fallen by  135.39 points, or 0.50%, close at 26,734.71.
  • The S&P 500 tumbled by 10.99 points, or 0.34%, ends at 3,215.57.
  • Nasdaq Composite Index fell by 76.66 points, or 0.73%, close at 10473.83. 

Asian Markets In Morning

Indices Current Value Prev. Close % Change
Nikkei 225  22,773.95 22770.36   0.02%
Straits Times  2,634.56 2623.67   0.42%
Hang Seng   25,197.63 24970.69   0.91%
Taiwan Weighted  12,230.34 12157.74   0.60%
Kospi  2,199.79 2183.76   0.73%
Jakarta Composite  5,089.09 5098.37  -0.18%
Shanghai Composite  3,252.12 3210.10   1.06%
SGX Nifty  10,774.00 10703.50   0.66%
Time of data collection: 8.00A.M

Nifty 50 outlook for the day.

  • SGX Nifty is suggesting that Indian Markets will start at around 10800 level. Today strategy is to buy Nifty at around 10700 level (if its dips) and target 10850. Stop loss at 10600 level.
 
Learn Technical Analysis: Click Here
 
Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in

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