ZFX: Bottom fishing? Economic data boost amid choppy market
Overnight on Wall Street, the sentiment was improved. The Dow, the S&P 500 and the Nasdaq all rose around 0.2%-0.37%. The moves were a bit volatile, with the Dow was up more than 300 points at one point but dropped back to the red area at the late session once.
The dollar index was the focus these days. After a slight slip of the dollar from the recent high, closed at 94.33 on Thursday, the stock markets turned to be not that sluggish.
ZFX analyst Jacob Leung said that, as mentioned recently, a quite strong negative correlation between the dollar and the market sentiment was seen. This is so called “Cash is King”. It is expected that the financial markets were still under the “safe-haven” theme in the coming few these days.
The economic data from the US housing were outstanding over the recent weeks, even under the doubtful recovery situation. On Thursday, it may be the main reason for “bottom fishing”, pushing up the three major indexes. ZFX analyst Jacob Leung said that, of course it may be showing the buying interest, but technically speaking, the trends were still bearish. The retracement of the dollar was limited, made a “Doji” alike, meaning that the sentiment was just still cautious.
The market is also closely watching the negotiations of the US Congress. It is reported that Democrats in the House of Representatives are preparing a draft of a relief bill of up to $2.4 trillion, which to some extent propped up the sentiment.
ZFX analyst Jacob Leung said that the global stock markets are still choppy amid the correction stage. It is not a high chance that the Republicans will agree with such a stimulus package in the very short term especially before the US election. Any uncertainties coming may just further put on pressure, provided that the “bullish” in the market sounds temporary.
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