Global Markets Bleed as Trade War Escalates

Fundamental Analysis:

Tensions have escalated following U.S. President Donald Trump’s decision to sharply raise tariffs on several major economies. In response, countries like China and Canada have retaliated, while the EU and UK are preparing their own measures. Market sentiment has turned extremely bearish, with the Dow Jones plunging over 5% last Friday. As panic selling continues, investors are bracing for heightened volatility at the start of the new trading week.

Technical Breakout:  The Dow Jones is currently trading lower, testing the key support level at 38,110.00. MACD signals increasing bearish momentum. If the index breaks below this level, further downside could be seen, potentially targeting the next support at 35,305.00. Conversely, a rebound would face resistance near 40,595.00 and 42,730.00.

Potential Risks: Trade war uncertainty continues to dominate headlines, with potential to trigger deeper declines across global equity markets.

Monitoring: Stay updated on potential trade tensions between US and world to gauge the likelihood movement for several asset classes.

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