Let’s explore the reason for surging Stocks on Dow.
- European Union on Tuesday granted 750 billion euro to support the economical activities hamper by the pandemic.
- This historical package struck between European leaders to aid the economy from crisis.
- US is also planning to grant atleast $ 1 trillion stimulus package to bring the economy back on track.
- Trump cautious comment on corona ” Will get worse before its get better” is key risk to equities.
- Asian markets are trading flat this morning. (7:00 A.M)
- SGX Nifty is in green note this morning. (8:00 A.M.)
Why Dow rallied on Tuesday?
- Tuesday, Stocks around the world rose on historical stimulus package of 750 billion euro struck between leaders in Europe to put the economy on track. This is key positive development and lifted the market sentiment.
- US is also planning to come out with a stimulus package of at least $1 trillion to support the economical activities. This will provide another push to economy recovery in this tough time.
- Yesterday in US markets fell in late trading session after Trump comment on corona “Will get worse before its get better” . This is key risk o equities.
- These are the factors that lifted stocks on Dow Jones in US markets.
- Dow Jones Industrial Average rose by 159.53 points, or 0.60%, close at 26,840.40.
- The S&P 500 surged by 5.46 points, or 0.17%, ends at 3,257.30.
- Nasdaq Composite Index increased by 86.73 points, or -0.81%, close at 10,680.36.
Asian Markets In Morning
|Indices||Current Value||Prev. Close||% Change|
|Jakarta Composite (Jul 21)||5,114.71||5051.11||1.26%|
Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 11150 level. Today strategy is to wait for dip at 11000 level and they buy Nifty future with a target 11200 level and stop loss 11050.
Learn Technical Analysis: Click Here
Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in