The start of Tuesday's Asian session brings an improvement in sentiment, following the wave of fear that covered yesterday's stock market trading. The US2000 index managed to close trading above the 200-day exponential moving average (gold curve in the chart below), which is an important support point for the overall medium-term uptrend.
What's interesting is that the Russell 2000 (US2000) yesterday broke below the minima of the post-election-initiated U.S. gains, which technically undermined the underpinnings of the wave of euphoria following Donald Trump's election win.
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Create account Try a demo Download mobile app Download mobile appToday's market-stimulating news may be a Bloomberg report that advisors on Trump's incoming economic team are considering phasing in tariffs, increasing them gradually each month. The news focused on a plan to raise tariffs by 2% to 5% per month. The slower imposition of tariffs is intended to strengthen Trump's negotiating position while minimizing the risk of a sudden rise in inflation.
It is worth remembering that investors are awaiting the first inflation data from the US today, namely the PPI reading. Together with tomorrow's CPI report, this could be the data that will increase volatility in the major financial markets.
The US2000 managed to hold the 200-day EMA, which may indicate a general technical uptrend. Source: xStation
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