Trade truce relief rally gets beating, Asian stocks plunged

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Asian stocks fell, as trade commitment triggered the question, “whether a trade deal could be reached within 90 days

  • In the Asia Pacific session today, Asian stocks had been broadly lower, signalling that the US-China trade truce relief rally might have dried out.
  • The American dollar keeps falling apart, as Gold, oil, GBP and EUR gaining momentum
  • The warmth of G20 summit seems already to be faded away, as White House seeks immediate Chinese response over trade commitment

Today, the Asian stocks had been broadly lower with ASX 200, Hong Kong and Seoul down. Shanghai had been found struggling to stay in out of the red zone, while the American dollar keeps falling as well. The warmth generated by G20 summit and trade truce, appear to be faded away, as US seeks China to immediately respond to the trade truce. Initially, US would like to the tariffs of US autos in China set to zero, as it has been stated by White House.

Asian stocks have dipped broadly, as investors have started to become really worried whether trade deals could be obtained within a 90-days timeframe. The Nikkei 225 slipped by 1.9% and Shanghai was flattened in the middle of the afternoon. Hong Kong was down by 0.6% and Kospi, alongside ASX 200 both dwindled by 1%.

ASX 200 daily chart

ASX 200 daily chart

While Asian stocks were falling apart, the USD had also been plunging and currently is reigning just below 95.85, amidst a bearish bias and gloomy market tone.

Bottom Line

While this report is being written, JPY and CNY were up, while USD has been falling apart, residing well below 95.85 level. If the present bearish pattern sustain, USD could soon be experiencing below 95.50 region, while key support is still residing at 94.30. Gold has found higher grounds over 1240 region and US crude keeps finding critical support over $54.05, followed by OPEC production cut to support the oversupplied market.

Read more on Asian stocks Asian stocks fell, as trade commitment triggered the question, “whether a trade deal could be reached within 90 days

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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