Bull time for stock markets but how long it will continue?

U.S. President Donald Trump said "North Korea's reckless pursuit of nuclear weapons and ballistic missiles threatens the entire world with unthinkable loss of human life." to rally UN members yesterday but a new war on the Korean Peninsula seems very unlikely at this time combined with the rising treasury yields so Dow Jones rose 39.45 points on Tuesday. The eased tension on Korea Peninsular and strong economic data following with the stimulating monetary policy support most stock markets: Nasdaq, Nikkie, Euro Stoxx, LSE stay in green zone today.
In my opinion, the U.S. central bank meeting tomorrow is significant for investors as FED may announce or signal the future policy. Definitely the meeting will affect U.S. stock market and dollar and it may also affect other stock markets such as Japan, Europe, China, Canada, U.K., etc. Thai stock exchange may also get the effect as foreign investment is one of the important part. SET dropped lower a little bit early today as foreign investors sold and no other good factors supported the index.
Oil price rose on Wednesday after Iraq had signaled that OPEC would reduce supply. Stochastic shows that Brent may reach the overbought zone soon however I think today it may rise over 55.4 and next week we may need to do a new resistance for crude price because the U.S. crude oil inventory at 21.30 GMT+7 may decrease. In contrast, gold may drop back to touch stochastic overbought line even it has bullish trend today.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

Olymp Trade Review