Asian Session: Weak Open as Market Surrenders Prior Highs
The Asian session opened lower, giving up the previous U.S. session’s highs as risk sentiment deteriorated following China’s announcement of fresh retaliatory tariffs. Effective February 10, China will impose a 15% tariff on U.S. coal and liquefied natural gas (LNG) and a 10% tariff on crude oil, agricultural machinery, and certain automobiles. Additionally, Beijing introduced export restrictions on key industrial minerals, including tungsten and molybdenum, citing national security concerns (source: AP).
These measures escalated trade tensions, triggering a risk-off reaction across global markets. As a result, Nasdaq futures steadily declined throughout the session, eventually setting a new low at 21,241.
European Session: Buyers Step In, But Upside Remains Capped
As the European session unfolded, buyers cautiously stepped in, lifting price back toward monthly VWAP. However, upside momentum remained weak, with price action largely in consolidation as traders assessed the impact of escalating trade disputes and broader economic uncertainty.
New York Session: Breakout Above Overnight High, Price Tests Key Resistance
The New York session opened with renewed buying pressure, breaking out of the prior consolidation and clearing the overnight high. The rally extended toward last week’s value area high, setting a session peak at 21,693.
However, after the initial breakout, price faced resistance and settled into a range, fluctuating between the overnight high and last week’s value area high. Despite the consolidation, buyers remained active, suggesting an attempt to build support for a potential breakout in the coming sessions.
What’s Next?
With price stabilising at key levels, attention turns to whether buyers can sustain momentum and push beyond resistance. A clean break above last week’s value area high could trigger further upside, while failure to hold these levels may invite renewed selling, reinforcing a range-bound market.
