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Dow Jones Benchmark Falls More Than 600 Points

  • DAR Wong
  • 5 February 2018

Fundamental Outlook   The U.S. indicators point to inflation pressure before new Federal Reserve Chief Jerome Powell comes on board o this week. Traders fear of rate hike that may come too soon that trigger Dow Jones benchmark falls more than 600 points before weekend. Chinese Yuan advances as Dollar weakens for many weeks.

American consumer spending rose 0.4 percent in December after the previous month was revised to 0.8 percent gains.  The Conference Board of consumer confidence rose 125.4 in January and higher than previous month.

The U.S. pending home sales rose 0.5 percent in December and matched forecast. Another report on ISM manufacturing index rose 59.1 in January. Unemployment claims lowered to 230,000 for the week ended 27 January and below forecast.

Monthly U.S. non-farm payroll rose 200,000 in January and above expectation. Jobless rate at 4.1 percent without much change. Dow Jones benchmark shed more than 600 points on Friday as trader took profit in market.

China’s Caixin manufacturing index steadied at 51.5 in January. Chinese Yuan has been rising for more than a month and challenges the high against Dollar that was created in August 2015.

Japan’s retail sales grew 3.6 percent in December from a year ago and highest in 3-1/2-year record. Household spending contracted 0.1 percent on year.

German retail sales declined 1.9 percent in December. Eurozone consumer prices grew 1.3 percent in January on year basis and matched forecast. Another report on Eurozone GDP for Q4 seasons expanded 0.6 percent.

U.K. net lending to individuals 5.2 billion in December and best in past 3 months. Mortgage approvals at 61,000 and lower than 65,000 in November.

Markit in London reports manufacturing index dropped to 55.3 in January and below December 56.2. Construction index grew at slower pace 50.2 in January versus 52.2 in previous month.

 

Technical Forecast   USD/JPY recovered last week after failed to break below 108.00 level. This week, we reckon the trend will stay sideways from 109.00 – 111.00 range amid mixed sentiment. Traders are advised to adopt proper risk control in case the trend extends beyond the aforementioned range.

EUR/USD traded in small range on the upside last week. This week, the trend is resisted at 1.2560 in case of further rise. Support is temporarily identified at 1.2360 region, which failing beyond this level will drive down to 1.2160. Dollar policy has become a strong influence against Euro trend for the time being.

GBP/USD has begun to slow down in ascension as traders observe the impact of BREXIT and ongoing negotiation. This week, Bank of England will hold meeting to decide monetary policy. We predict the range will be contained from 1.3960 – 1.4360 region. However, beware of extension beyond this range that needs to be controlled with risk management.

 

 

Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work.

DAR Wong is a registered fund manager in Singapore with 27 years of global trading experiences. You may reach him at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.