Yesterday stock markets were relieved and managed to move higher as reports stated that U.S. President Donald Trump may be holding back on imposing tariffs on Europe and Japan regarding various products including cars and parts.
From the US the S&P 500 .SPX gained 0.59%, to 2,851.14 and the Nasdaq Composite .IXIC added 1.13%, to 7,822.15, while the Dow Jones Industrial Average .DJI rose by 0.47%, to 25,651.86.
Facebook takes criticisms of New Zealand killings video streaming
We start first with the technology sector that was up due to various stocks upsurges.
Yet, among others, analysts pointed to Facebook as the social network announced new measures it would be taking on its live streaming application.
Facebook had taken a lot of criticism for the New Zealand killings during a ritual pray time massacre incident that was live streamed by the person that committed the crime.
Facebook announced that it would start restricting who can live stream video on the platform by applying the “one strike” policy.
The new policy is aimed at users who violate the platform’s community standards as they will be banned from using the livestreaming service for a specific time frame.
Users will also be monitored on normal posts and if Facebooks identifies any leads to terrorist content, the user will be banned from live-streaming as well.
Facebook looks very determined to make drastic changes as earlier this month various political personalities were banned from Facebook and Instagram due to another new policy named, Facebook’s Dangerous Individuals and Organizations policy.
From our point of view AI use can be the solution to watching the content being streamed or posted by individuals and even make the decision to ban or delete content in the near future.
Yet this could also lead to people being completely monitored 24/7.
On another front Facebook Inc. has been purchasing acres near its new data center in New Mexico.
Facebook bought 300-acre parcel in 2016 and is now extending the land it owns without however disclosing the plans it has for this action taken.
Nevertheless this could be an indication that Facebook could be looking to construct something extraordinary.
Chinese Alibaba Group growing
On other news, the Chinese Alibaba Group Holding Ltd released much better than expected figures for the fourth-quarter on Wednesday which gave the stock a boost.
Growth was also viewed in its core business and its diversification into cloud computing and other services.
Alibaba has expanded and participates in new sectors such as cloud computing after its core e-commerce line was very successful and is now making a correction somewhat lower.
Alibaba announced a 51% growth in group revenue for January-March from a year earlier to 93.50 billion yuan ($13.6 billion), much higher than the forecasted 91.58 billion yuan, according to reports.
The group also went a step further to make revenue predictions for the full fiscal year ending in March 2020 with a figure reaching 500 billion yuan.
If the figure is realized it would be a 33% increase compared to the previous year.
The reaction to the news was positive as its stock was up 1.7% at $177.55 in New York, upon release of the news.
Which companies are affected by US tariffs?
In Europe, stocks also surged after U.S. officials said President Donald Trump was expected to delay auto tariffs, with investor’s adding positions in tariff-affected firms.
In particular, European autos stocks were up with German auto makers like BMW, Volkswagen and Daimler moving into green lights pricing.
Germany’s DAX .GDAXI, home to the region’s biggest carmakers, also soared on the news, increasing as much as 0.7%.
German car maker BMW confirmed that an investment in a new factory in eastern Hungary is going ahead as planned, according to the Hungarian government.
BMW previously said their sales may be in a decline for 2019 and the auto sector in general could be in low demand zone.
Yet the auto industry could also face uncertainty in later months if the US eventually imposes tariffs on European cars.
As a conclusion, if the trade wars are escalated we could see the stock markets experiencing a bearish momentum.
Otherwise should differences be amplified we could see stock markets being on the rise.
DAX30 Technical Market Outlook
Starting our technical view we would like to note DAX30 was trading nearby its current level last September 2018.
Yet the index has been in an upward momentum since December 2018 and has managed to maintain its upward trend until now.
If the upward momentums is to continue we could see the index aiming for the (R1) 12297 resistance level and climb even higher to the (R2) 12428 resistance line.
Even higher we could find the (R3) 12556 resistance level.
In a downward trend we could see the index breaking below the (S1) 12154 support level with the next levels possibly being the (S2) 12010 and the (S3) 11861 support levels.