Global equity markets drop sharply

6 February, 2018

Global markets were having  a case of the Monday blues today as they tumbled sharply on the back of fears around global economic growth and a potential slowdown. There has been talk for some time about the threat of a global slowdown, but also an increase in interest rates flowing into the market. At present this is mixing together to cause markets to stress heavily and of course equity markets are the first to fall as a result. The big mover for me today was of course the S&P 500 which I've been bullish on for some time, but as a result of the movements today the certainty has all but evaporated in a hurry. The Trump effect looks like it may need to shine a little stronger to help hold back the tide of equity markets.

On the charts the S&P 500 plummeted today and was only stopped after hitting the 100 day moving average in an aggressive move which can almost be described as a crash. However, I hesitate to call it that and add that it did the same thing in 2011 before recovering, so the horse has not yet bolted for a full on bear market. If the market is set to continue in a bearish trend then the 100 day moving average will be lucky to hold this back tomorrow, and the 200 day moving average could become the line in the sand. Support levels can be found at 2628 and 2564 on the charts. If the market did jump higher, then 2698 and 2743 could be key resistance levels the market could target when it comes to profit taking on the volatility. Overall though this sort of volatility is where traders can make and break fortunes quickly, as the market can quickly swing violently and rapidly without warning.

Previously with any large bearish movements we have seen gold swing back into the picture as traders look to hedge on movements like this. As a result of all the movements I am surprised to see that movements thus far have been far from what you'd expect. Which indicates to me that markets are not entirely convinced that this is anything to get to worried about already.  But gold is one of the major markets to watch in any event when volatility becomes a serious worry for markets.

Gold on the charts is looking somewhat impressive as markets have been bullish about it today, bouncing near support at 1326 to lift higher above the current support level of 1336. A positive open could see it extend higher to 1349 and 1357 in these current market conditions. Expectations will be high that we could see traders move across if the futures market for equity contracts continues to come under pressure.

Source link  
Investors ignored latest round of tariffs

Equity markets do not seem to be concerned over the latest phase of the U.S.-China trade war. Investors have been pricing negative news...

Chinese Yuan shows resilience

Conflicting indications over the status of trade talks between the United States and China has contributed towards a subdued opening of the week...

Rand to remain volatile this week

Optimism that the moves from both the Central Bank of the Republic of Turkey (CBRT) and Central Bank of Russia (CBR) to raise respective interest...

Dollar falls on trade hopes

A collective sigh of relief across financial markets and investors has been noticed following the latest reports that the United States has proposed...

Markets quiver on EM contagion concerns

A sense of doom and gloom lingered across financial markets today as contagion fears from the brutal emerging market sell-off rattled...

Global trade tensions fuel risk-off sentiment

Risk aversion remains at the forefront of the current market sentiment. Prolonged trade tensions around the global economy and the new risk that investors...

More pain for emerging markets?

Asian equities were mixed on Tuesday as U.S. markets were closed on Monday and investors continued to price in a further escalation of trade...

Sentiment bruised by Tariff plans

Asian stocks were under renewed selling pressure this morning as global trade concerns and chaos across emerging markets weighed on risk appetite.

EM currencies rattled by Lira selloff

Emerging market currencies were out of favour after Argentina's peso collapsed to a record low, with the Turkish Lira, South African Rand, and Chinese Yuan...

In the past 24 hours Bitcoin has gained 1.67% and reached $6521.90114538. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.0963% and is now at $1.1682. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 4.17% and is now at $223.007955226. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%