Trade War Fear Weights On SPX & DAX – Key Levels To Watch

The global stock market indices are flat as investors are playing it safe after a tax announcement from US President Donald Trump sparked new fears of a trade war. The Volatility Index (VIX) that measures the fear of the investors has soared to 18.73.

Last week, President Trump announced an increase of 25% on imported steel and an increase of 10% on imported aluminum, raising concern for higher prices and possibly a trade war.

The higher cost of raw material reduces profit margins until corporations increase the sales price but the increased sales prices cut the demand. Ultimately, it’s going to hurt the profits of companies which will pay fewer dividends than they were paying before. That’s exactly the reason behind a bearish bias of investors. Take a look at key trading levels.

S&P 500 – SPX – Trading Levels

Support     Resistance

2655.06    2763.42

2621.59    2796.89

2567.41    2851.07

Key Trading Level:    2709.24

DAX – GER30 – Trading Levels

Support     Resistance

11854.45    12407.43

11683.63    12578.25

11407.14    12854.74

Key Trading Level:    12130.94

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Tech Stocks Lift Nasdaq, DJIA Follows as Google and Intel Earnings Beat

5 days ago

Save

Broadcom AVGO Stock Breakout with 15% Gain as Markets Climb

5 days ago

Save

DAX: Strong Ifo Numbers Fail to Support Correction Rally

5 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments