Morning Brief: Top Trades for Friday Morning
Rowan Crosby • 1 min read
Good morning traders.
There’s been more carnage on equity markets overnight as terror fears and more scandal from Donald Trump, rattled US stock markets.
US President Donald Trump disbanded two advisory councils and then attacked congress in more controversy for the administration. If that wasn’t enough a van ploughed into pedestrians in Barcelona in a suspected terror attack. These developments sank investor confidence and US stocks got hurt badly with the S&P 500 down more than 1.5% and the Nasdaq down 1.9%.
It was literally only last week the S&P 500 fell 1.4% on the back of US President Trump and his battles with North Korea.
So today I think we need to look for the same sort of patterns to play out. The first thing I’m interested in is whether the decline in equities can follow through. The obvious trade here is for a continuation of downside momentum in the Nikkei.
We have a key level at 19300 that I suspect we might be able to test. So depending on the open, if there’s momentum I’ll be looking for some follow through here. I want to see opening momentum and a move towards the lows. Then we can use the 19300 level as a target.
It’s a quiet day on the data front in Asia so today will be dominated by sentiment.