US markets tumbled on news of High Unemployment Claim
Let’s explore the reason for falling US markets
Weekly jobless claim 1.3 million slightly worse than expected.
Rising US & China tension is source of worry on equities.
US markets are hopeful from further stimulus to support the economy.
Asian markets are trading high on this hope on Friday.
SGX Nifty is in positive note this morning. (8:00 A.M.)
Why US markets are trading in red?
US markets are facing high corona cases with average number of cases at 60000 per day. This has resulted in restricting the economical activities there and that is the reason that the weekly unemployment claim is high in the economy.
Yesterday weekly unemployment number came at 1.3 million worst than expected and markets tumbled due to this reason.
Silver line for the market that sooner the Trump administration will issue further stimulus package to support the economy from unemployment. This is positive development and that is why Asian markets are trading positively this morning.
A key risk to equity is worsening US & China relationship. US is planning to put travel ban on all members of Chinese Communist Party.
Dow Jones Industrial Average fallen by 135.39 points, or 0.50%, close at 26,734.71.
The S&P 500 tumbled by 10.99 points, or 0.34%, ends at 3,215.57.
Nasdaq Composite Index fell by 76.66 points, or 0.73%, close at 10473.83.
Asian Markets In Morning
Time of data collection: 8.00A.M
Nifty 50 outlook for the day.
SGX Nifty is suggesting that Indian Markets will start at around 10800 level. Today strategy is to buy Nifty at around 10700 level (if its dips) and target 10850. Stop loss at 10600 level.