Market News & Analysis
Atmosphere Darkens for Techs Ahead of Talks
Ken Odeluga September 27, 2019 12:03 AM
U.S. indices lag Europe as intel hearing and trade news keep the pressure on
U.S. stock market participants are probably paying attention to the live testimony of Jospeh Maguire to Congress. He’s the Director of National Intelligence and is being grilled by a congressional committee about allegations of a whistle-blower relating to a conversation between U.S. President Donald Trump and the president of Ukraine. It’s riveting stuff to be sure. But he is playing it straight down the line. He’s neither responding to Republican plaudits for being impartial, or Democrat insinuations that his expressed determination to protect Presidential privilege could be shielding disclosure of misconduct.
As such, U.S. stock markets look to have reacted more to fresh, though vague, developments on the trade front. Headlines, quoting a State Department spokesman, suggesting the U.S. is unlikely to extend a temporary waiver for U.S. suppliers of Huawei, is hitting technology stocks. Specifically that means, chip shares and the like, with specialist processor maker NVIDIA, hardest hit. We should also expect some stock market aversion from a hit to copper, which has also reacted negatively.
The State Department also signalled that it will push on with a re-think of intelligence sharing with U.S. allies who aren’t inclined to stop using Huawei. So close to October trade talks with China, the latest commentary tends to place a dampener on their scope. It may be no coincidence that Thursday’s news follows the emergence on Wednesday of person-specific sanctions on certain Chinese officials.
Assuming the graphics chip maker is particularly sensitive to trade-related developments that could significantly impact its business there, let’s take a glance at its chart. The zoomed-out view shows a bullish trend that can be backed linearly since February 2016, remains intact. Less positively, NVDA has now been capped since last October by overhead resistance; in fact a gently sloping uptrend. It’s complemented by the longer-term rising line mentioned above to create a channel. Upside impediments also include the strong appearance of resistance in the $193 region, which has seen bounces from above and below since November. As the stock drifts down following its latest impact with the ambivalent overhead line, a visit to the lower bound of the channel looks to have decent odds. Progress beyond the structure requires a break higher or lower first.
NVIDIA Corp CFD – Daily [26/09/2019 16:59:42]
Source: City Index
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.