New US sanctions against China caused the fall of global stock markets
The French industrial PMI dropped in July. Will the decline of FR40 quotations continue?
The French macroeconomic indicator Markit Manufacturing PMI in July this year dropped to 49.7 points. This is worse than a preliminary forecast of 50 points. In general, the global stock markets are experiencing a decrease in quotations against the background of another exacerbation of the US-Chinese trade war. US President Donald Trump announced a duty increase of 10% from September 1, 2019 on imports of Chinese goods worth $ 300 billion a year. The fall of the FR40 index last week was the maximum since October 2018. The current P / E level (capitalization / total net profit for the year) of the index is 17.5. He is now 13.3% higher than the level at the beginning of 2019.
On the daily timeframe FR40: D1 broke through the support line of the medium-term uptrend. A number of technical analysis indicators formed signals for lowering. A further drop in quotations is possible in case of worsening trade wars and their negative impact on the world and French economies.
Technical Analysis Summary
Position Sell
Sell stop Below 5350
Stop loss Above 5680
The French industrial PMI dropped in July. Will the decline of FR40 quotations continue?
The French macroeconomic indicator Markit Manufacturing PMI in July this year dropped to 49.7 points. This is worse than a preliminary forecast of 50 points. In general, the global stock markets are experiencing a decrease in quotations against the background of another exacerbation of the US-Chinese trade war. US President Donald Trump announced a duty increase of 10% from September 1, 2019 on imports of Chinese goods worth $ 300 billion a year. The fall of the FR40 index last week was the maximum since October 2018. The current P / E level (capitalization / total net profit for the year) of the index is 17.5. He is now 13.3% higher than the level at the beginning of 2019.
On the daily timeframe FR40: D1 broke through the support line of the medium-term uptrend. A number of technical analysis indicators formed signals for lowering. A further drop in quotations is possible in case of worsening trade wars and their negative impact on the world and French economies.
- The Parabolic indicator gives a downtrend signal.
- The Bolinger bands widened, indicating a volatility increase. Both lines slope down.
- The RSI indicator is below 30. It formed a divergence towards to fall.
- The MACD indicator gives a bearish signal.
Technical Analysis Summary
Position Sell
Sell stop Below 5350
Stop loss Above 5680
