1, Stocks Pop Higher on Tentative Shutdown Deal
Nasdaq 100 Futures, 4-Hour Chart Analysis
Following yesterday’s marginal gains, today, global stock markets are well in the green at the US open, as investor sentiment improved substantially. It seems that a second partial government shutdown might be avoided in the US, as the two parties agreed in the Congress on a tentative deal. On a negative note, the deal doesn’t include the funding for Trump’s controversial Wall, so the President could still block the agreement.
The continued rally in Chinese markets, which was fueled by the optimism regarding the trade talks between China and the US, is also helping global markets today, with the extension of the March 1 deal now being officially on the table just as we speculated during the weekend. Besides equities, risk assets are higher across the board, due in part to the Dollar’s dip, with especially crude oil being helped by the renewed trade optimism.
On Wall Street, the Nasdaq 100 index is facing stiff resistance near 7000, and given the still dominant bearish global trends and the recent lofty gains of the major US indices, a failure at that level could mean that the stock market is finally ready to roll over following last week’s trendline breaks.
2, Dollar Pulls Back as Traders Await Jerome Powell
Dollar Index, 4-Hour Chart Analysis
The Dollar Index (DXY) spiked above the key resistance zone near the 97 level following 8 positive days in a row today. Although the index pulled back somewhat thanks to the broad risk rally, the reserve currency could be in for a volatile US session, and it could even end up extending its winning streak should Fed Chair Jerome Powell pull a shocker yet again.