World stocks decline as trade fears escalate
The price of crude oil rose today after Saudi Arabia revealed that two of its oil tankers were attacked along the coast of United Arab Emirates. This was a few hours after UAE said that four of its vessels had been sabotaged as tensions in the gulf region rise. In a statement, the Saudi oil minister said that the ships were attacked off the coast of Fujairah. Fujairah is one of the 7 emirates that make up the UAE. The crisis is likely because of their support for Trump’s policies against Iran, which is viewed as a threat to the region. However, Tehran distanced itself from the two incidents.
Global stocks declined today as traders continued to worry about the escalating trade conflict between the US and China. In China, the Shanghai index declined by 35 points while in Japan, the Nikkei declined by 168 points. In Europe, DAX and FTSE 100 declined by 100 and 12 points respectively while in the US, futures pointed to a lower open. The Dow index is expected to decline by more than 300 points while the S&P is expected to drop by 40 points.
Bitcoin continued moving upwards today, reaching a high of $7180. This year, the price has gone up from a low of $3000 to today’s high. The rally today was not attributed to any specific news. However, there is a likelihood that investors have been attracted by the bull market that started in January after the price dropped to a yearly low. As the bull market has continued, some analysts have started estimating that the price could reach $10,000.
The BTC/USD pair rose to a high of 7180. This is the highest level since August 2018. In the daily chart below, this price is above the 50-day and 100-day moving averages. The RSI has continued to soar, reaching a high of 85, which is considered an overbought level. The volumes indicator has continued to increase as well. The pair could continue rising, to reach a high of $8,000.
The EUR/USD pair was relatively unmoved today, mostly because of the lack of economic data today. The pair is now trading at 1.1230. On the 30-minute chart, the pair is along the 25-day moving averages and above the 50-day moving averages. The price is also along the middle line of the Bollinger Bands. The pair could remain along this channel ahead of important data from the EU expected tomorrow.
Nasdaq futures have been dropping since last week after reaching a YTD high of 7862. On the four-hour chart, the pair is trading below the 25-day and 50-day moving averages while the RSI is moving lower to the oversold level. The accumulation/distribution indicator has been easing. There is a likelihood that the index could reach $7200 before bouncing back.