Dow Jones, DAX 30 & FTSE 100 Forecasts:
- The Dow[1] Janes has slipped from record highs after it was announced a trade deal may not be reached in 2019[2]
- Alongside trade wars, the DAX 30[3] will digest German CPI and unemployment data
- Meanwhile, FTSE 100[4] traders will continue to keep tabs on the political landscape in the UK
Dow Jones Forecast Tied to Trade and Economic Data
The Dow Jones slipped from record levels last week as markets realized a phase one trade deal could be a pipedream, especially before the end of the year. The realization sparked a broader reassessment of the index’s valuation, which was evidently too high given the shift in the probability of a trade deal. While the US-China trade war was largely responsible for last week’s pressure, it could look to offer further influence in the week ahead following a report on Friday from Reuters.[5]
Dow Jones Price Chart: 4 - Hour Time Frame (August 2019 – November 2019) (Chart 1)
Day Trading the Dow Jones: Strategies, Tips & Trading Signals[6]
The report suggests further headwinds for Huawei suppliers like Micron and other chipmakers, an industry that has already been plagued by trade war hurdles and slowing global growth. Further, Chinese officials could look to retaliate to the vote as they have previously expressed the importance of Huawei to their strategic goals. Retaliation to the decision would likely come in the form of undermining the state of trade progress, which would likely work to pressure the Dow Jones further.
While investors await the more-fluid developments, the market will also look to digest scheduled economic data[7] in the form of advance goods trade balance, consumer confidence,
