- Dow Jones scored 650 points on Thursday, climbing to 41 750.
- The Trump administration announced a preliminary trade agreement with Great Britain.
- The actual details of the commercial agreement still leave wide US tariffs for most of the goods.
The industrial average Dow Jones (DJIA) gained on Thursday, climbing over 650 points or 1.6% at the peak after the Trump administration announced the incoming (but still not signed) trade agreement with Great Britain (UK). According to the commercial agreement, most of the imports from Great Britain will still see a 10% tariff around the world, but the markets accept the message as a sign that Trump’s administration will continue to partially undo their own tariffs over time. However, the stubborn sentiment turned out to be miniature -lived, and the main capital rate returned to the opening offers of the day near 41 370.
Investors still hope for a rapid resolution of the US-China trade war, which has a high 145% import taxes of most goods from China. However, the chances of a quick solution to China tariffs remain low. According to President Trump, he is not interested in reimbursement of steep import fees for Chinese goods, and the Chinese administration is slowly establishing trade talks. Delegates from two countries are aimed at preliminary meeting to discuss trade details this weekend in Switzerland. Despite this, decision -makers on both sides calmed the expectations of immediate progress.
The tariff term is coming, progress in commercial transactions remain leisurely
The term July 9 on the “pause” of the Trump administration he imposed on her “mutual tariff” curve quickly approaches. Markets still believe that the Trump administration will be able to save a sufficient number of trade agreements that the damage resulting from immovable import taxes will be minimized. However, the progress remained leisurely and despite the fact that President Trump insisted a few weeks ago that his administration is in commercial negotiations with over 200 countries, progress does not seem to exist. On Thursday, the trade agreement announced on Thursday in Great Britain remains unigned and unofficial, and Donald Trump said that his administration should have everything “very decisive” in the coming weeks.
Read more warehouse messages: Nasdaq will advance as Trump to announce a trade agreement with Great Britain
Dow Jones price forecast
In the Thursday race, Bull briefly put down Dow Jones back into the high side of the 200-day interpretation medium-medium (EMA) near 41,600 for the first time since the beginning of April. The main capital indicator increased by more than 14% after pulling up close to 36 615, also at the beginning of April.
Dow Jones has almost finished full recovery from the tariff route, which dragged DJIA down the region 42 175. However, the stubborn shoot remains generally summer, and technical oscillators are fully attached to the territory of buying, strongly suggesting that the fight of Dow Jones with 200-day EMA may not end yet.
Dow Jones Daily Table
Dow Jones FAQ
The industrial average Dow Jones, one of the oldest stock market indicators in the world, is developed from the 30 most rotating operations in the USA. The index is rather weighted with the price, not weighted by capitalization. This is calculated by adding up the operating prices and dividing them by the factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years he was criticized for not representative enough, because he follows only 30 conglomerates, unlike wider indicators such as S&P 500.
Many different factors drive the industrial average Dow Jones (DJIA). The main results of component companies revealed in the company’s quarterly reports are the main results. The condition and global macroeconomic data also contribute because they affect the mood of investors. The level of interest rates, determined by federal reserves (Fed), also affects DJIA, because it affects the cost of a loan on which many corporations are strongly dependent. Therefore, inflation can be the main driver, as well as other indicators that affect the FED decisions.
DOW theory is a method of identifying the basic stock exchange trend developed by Charles Dow. The key step is to compare the industrial direction of Dow Jones (DJIA) and medium transport of Dow Jones (DJTA) and follow only trends in which both move in the same direction. Volume is confirming criteria. The theory uses elements of peak analysis and the trough. Dow theory assumes three phases of the trend: accumulation when clever money begins to buy or sell; Society’s participation when a wider society is joined; And distribution when clever money comes out.
There are many ways to trade in DJIA. One of them is the exploit of ETFs that allow investors to trade DJIA as one security instead of buying shares in all 30 components. The leading example is SPDR DOD Jones Industrial ETF (Dia). Djia Futures contracts enable traders by speculating the future value of the index and the options ensure the appropriate, but not the obligation, buying or selling the index at a predetermined price in the future. Investment funds enable investors to buy a diverse DJIA shares portfolio, thus ensuring a general exposure to the general indicator.
