The Dow Jones has opened decisively higher on Monday led by energy shares, as the US Flash Manufacturing PMI numbers came in according to market expectations. The US Flash Manufacturing PMI registered at 52.5, which as a decimal point lower than the consensus figure of 52.6. The previous figure was also revised upwards to 52.6.
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US-China Trade Deal Boosts the Dow Jones
The Dow Jones is surging towards fresh all-time highs after failing to get decisive lift from the news of a limited phase 1 US-China trade deal last Friday. However, things are very different today, with the Dow adding nearly 0.5% on the day to push to within a touch of all-time highs attained last week. Other US markets are up as well, with the Nasdaq and S&P500 index also gaining strongly as at the time of writing.
The boost in the Dow is coming from the financial and energy indices, with the Financial Index up by 1% after the US 10-year Treasury bills got a 2% boost in yield. The rise in crude oil prices above the $60 mark is also pushing the Energy Index into positive territory.
The market has received the upbeat Chinese Industrial Production and Retail Sales data amid cautious optimism that the latest US-China trade deal could lead to an uptick in growth of the two economies after an 18-month trade war.
The Dow is presently trading at 28,309 as at the time of writing and is now officially in all-time high territory. Support targets are presently seen at 28166 and 27765, and any pullback from the highs of the day could find support at these areas.
Further upside sees the Dow marching into new territory, with buyers being in firm control as to when to take their feet of the gas pedals.