Morning Brief: No Hiding Place Today – Dow Jones, Nikkei, DAX in the Deep Red

Global stocks are in the red today as investors digest the first debate between Donald Trump and Joe Biden. In the United States, futures tied to the Dow Jones, S&P 500, and Nasdaq 100 are up by more than 1.23%. The dollar index, on the other hand, has risen by 0.15%.

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In Asia, the Nikkei 225 index, Shanghai composite, and DJ Shanghai are down by more than 0.40%. In Hong Kong, the Hang Seng is up by 0.30%.

Meanwhile, in Europe, futures tied to the DAX index, FTSE 100, and CAC 40 are all down by more than 1%. The euro and pound have fallen by 0.13% and 0.30%, respectively.

Stocks are falling even after strong economic data in Asia. In China, data from China Logistics and Markit showed that manufacturing PMI remained above 50 for the fourth month in a row. In Japan, data showed that industrial production increased by 1.7% in August. The statistics office expect the industrial production will rise by 5.7% and 2.9% in September and October.

Still, the biggest movers of the Dow Jones and other indices will be the presidential debate. Analysts will be watching at whether new polling data will show a significant change in the numbers. Recent data has shown that Joe Biden has a substantial lead against Trump.

It is also a sea of red in the commodities industry. Crude oil price has dropped by more than 1% with Brent and WTI trading at $41 and $37, respectively. At the same time, gold and silver prices have dropped by 0.65% and 2.30% while copper is down by 0.65%. Digital currencies have also dropped, with Bitcoin, Ethereum, and Ripple falling by more than 0.30%.

Dow Jones technical outlook

The daily chart shows that Dow Jones CFDs are in a deep dive today a day after they fell by 0.50%. The price is below the ascending channel that is shown in pink. The lower line of the channel connects the lowest levels in June, July, and August. It is also slightly below the 25-day exponential moving average.

Therefore, at this stage, the outlook for the Dow is neutral since its movement will depend on the new polling data. Still, as at now, the bias is bearish so long as the price is below the channel and the 25-day EMA.

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Dow Jones Daily Chart

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