Please try another search
European stocks and futures on the S&P 500, Dow and NASDAQ 100 were mixed this morning as investors braced for big economic data appointments, including the Fed's monetary policy meeting on Wednesday and monthly job numbers on Friday.
The STOXX Europe 600 slipped into red territory after climbing to the highest level since July 2018—though it still remained beneath last week’s high-wave candle peak.
In the earlier Asian session, regional shares also ended mixed on thin trading, with Japanese markets kicking off a 10-day "Golden Week" break ahead of the abdication of Emperor Akihito in favour of Crown Prince Naruhito. Future contracts on the Nikkei still managed to advance 0.60%
A rally on China’s Shanghai Composite turned into a 0.77% drop after the beneficial effects of strong U.S. GDP growth and Chinese industrial profits—which rebounded after four months of contraction in March— fizzled out.
The Chinese benchmark index fluctuated wildly between a 0.71% gain and a 1.15% loss as traders took advantage of thin volumes after the country’s equities suffered their worst week versus global stocks since 2016. Technically, it confirmed the resistance of a double-top neckline on the hourly chart, which may be the head of an upsloping H&S top, after the price attempted, but failed, a climb above the 50 DMA. Such a scenario is in stark contrast with better-than-expected economic data. Ironically, the rosier outlook is hurting stocks, on speculation that Chinese policymakers won’t follow through with further stimulus.
U.S. investors have been facing the same backward logic, prompting rallies on disappointing data on the promise of a more dovish Fed and selling off when data showed signs of growth. This short-sightedness has been center stage since the 2016's Brexit vote and the macro jitters that ensued.
Meanwhile, South Korea’s KOSPI outperformed its regional peers, surging 1.7%, Hong Kong’s Hang Seng advanced 0.97% and Australia’s S&P/ASX 200 dropped 0.41%.
U.S. stocks hit fresh records on Friday. The S&P 500 (+0.47%) posted both a record close and an all-time high, as the session ended at the very highest point of the trade. The NASDAQ Composite (+0.34%) registered a new record on a closing basis after setting a fresh all-time high on Thursday. Conversely, the Dow Jones Industrial Average (+0.31%) and Russell 2000 (+1.01%), while also sealing upbeat gains, hovered below record levels—with the latter very far from them.
The yield on 10-year Treasurys edged higher at the European open, after remaining broadly flat during the Asian session. However, the climb is considered a correction within a clear downtrend.
The dollar also crawled into the green after falling for a second day, on a return move toward an ascending triangle, which pushed it to an 11-month high last week. Disappointing U.S. inflation figures later today would support speculation that the Fed will cut interest rates this year. The market is already pricing in a 50% chance for a cut in September. High level U.S.-China trade talks are also being monitored.
Meanwhile in crypto markets, the Bitcoin price has been unable to scale above the $6,000 levels it hit in its 2018 lows, despite a 20% surge on April 2, which extended to a 34% breakout of an ascending triangle-bottom from April 23. The BTC/USD trading behavior this month resembles the upsloping trend seen on the Shanghai Composite chart. The digital currency is fighting for its life between the ascending triangle, whose implied target has been mostly achieved, and the resistance of the 2018 lows.
WTI opened lower, falling for the fourth day, as U.S. President Donald Trump returned to pressuring OPEC to keep prices low. Technically, the price remained above the uptrend line since the December bottom, as the 50 DMA rushes to cross a flattening 200 DMA, set for a golden cross.
Earnings
Stocks
Currencies
Bonds
Commodities
Looking at the weekly close of the 10-year US Treasury yield, the final yield print this week at 4.30% is the highest weekly closing yield since the 4.47% close in late November...
A rate cut is unlikely for the Reserve Bank of Australia because inflation is still higher than the 2–3% target range. Further RBA decisions are unpredictable—the market awaits the...
Market Overview: S&P 500 Emini FuturesOn the weekly chart, the market has been stalling in the last 3 weeks by trading sideways and S&P 500 Emini is forming an Emini ioi breakout...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.