Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Opening Bell: USD Falls, Brent Oil Leaps; Tech Stocks Back On Top

By (Pinchas Cohen/ OverviewDec 12, 2017 07:20AM ET
Opening Bell: USD Falls, Brent Oil Leaps; Tech Stocks Back On Top
By (Pinchas Cohen/   |  Dec 12, 2017 07:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

by Pinchas Cohen

Key Events

Despite a suicide bomber's attack yesterday in one of Manhattan's busiest transit hubs during the morning rush hour, US stocks continued to rally. The Dow Jones Industrial Average closed a third day of gains, while the S&P 500 and the NASDAQ Composite each saw their fourth accumulation day.

The Russell 2000, an index of small cap stocks which has the most to gain if Congressional tax cuts are enacted, actually declined. Similarly, Financials, another segment considered to be tax cut beneficiaries, was the worst performer among S&P 500 sectors, down 0.25 percent.

On the other hand, the Technology sector which has been the best performing sector this year and has thus been seeing investors rotating out and into less highly valuated Financials, led the advance, gaining 0.86 percent. As of yesterday’s, close, tech shares are up 30.89 percent YTD, outperforming the S&P 500 benchmark's 17.45 percent gain by 45 percent and outperforming the 19.74 percent financial sector gain by 24 percent.

Global Financial Affairs

This morning in Asia however, the US rally was nothing but a dim memory. The Nikkei failed to maintain a 26-year high, while Chinese stocks—both on the mainland’s Shanghai Composite and Hong Kong’s Hang Seng—slipped lower.

European shares extended their losses, both as an extension of today's Asian session, as well as on the heels of yesterday’s European declines. The STOXX 600, Germany's DAX and France's CAC 40 all retreated from the top of their respective ranges. This decline may have been due to profit-taking, or it could have a special bearish implication, considering that it follows a rebound in technology shares, boosted by the prospect of European digital services provider Atos's (PA:ATOS) $5.1 billion offer for Amsterdam-based digital security company Gemalto (AS:GTO). When good news fails to support shares, it reeks of sector or even overall weakness.

DXY Daily
DXY Daily

This morning the dollar declined. Should the slide continue till close of trading today, it would confirm yesterday’s bearish Hanging-Man, which followed a bearish Shooting-Star.


In a mirror image, yesterday the euro formed an Inverted Hammer which is bullish upon confirmation of a higher close. The single currency price is on course to do just that, thereby forming a bullish Hammer.


Sterling erased earlier gains today after the UK trade secretary said his country strives for a “virtually identical” trading relationship to the one it now has with the EU. It might have been more meaningful to pound investors if this sentiment had been expressed by a representative of the European Union, which has been taking a hard line regarding the 'divorce', ever since the Brexit vote in mid-2016. The pound meanwhile found support above its uptrend line since November 3.

Brent Oil Daily
Brent Oil Daily

WTI crude is on track for its fourth day of gains, while Brent crude catapulted above $65 a barrel, a two-and-a-half year high, after British refiner Ineos said it would shut down its Forties Pipeline system, one of the most important oil pipelines in the world, because of an expanding hairline crack.

Gold Daily
Gold Daily

Gold rebounded from a five-month low, as it trades in a range in which an upside breakout would complete a massive, 5-year bottom. The implied implied target would reach 20 percent, passing the neckline toward $1,650.

Nickel led industrial metals lower after a return move to its H&S top neckline and a broken uptrend line since July.

Up Ahead

  • November U.K. inflation may show signs of ebbing when released today. Consensus sees CPI growth holding at 3%, raising hopes the squeeze on households has abated.
  • Germany’s ZEW Index of investor optimism for December slipped to 17.4 from the previous reading of 18.7.
  • Fed policy makers announce their next policy decision on Wednesday.
  • The ECB, Bank of England and Swiss National Bank set monetary policy at their respective meetings on Thursday.
  • Among top U.S. economic reports this week are consumer inflation on Wednesday and retail sales on Thursday.
  • European lawmakers continue to debate Brexit and weigh moves on the next step, while the sixth round of North America Free Trade Agreement negotiations are scheduled to begin later this month.

Market Moves


  • The Stoxx Europe 600 Index dipped less than 0.05 percent as of 8:26 London time (3:26 EDT).
  • The U.K.’s FTSE 100 gained less than 0.05 percent to the highest in two weeks.
  • Germany’s DAX rose less than 0.05 percent.
  • Japan’s Nikkei 225 Stock Average decreased 0.3 percent.
  • The MSCI Asia Pacific Index sank 0.2 percent.
  • The MSCI Emerging Markets Index dipped 0.5 percent.
  • S&P 500 Futures increased less than 0.05 percent to 2,665.00, the highest on record.


  • The Dollar Index declined 0.7 percent, paring from a 0.11 percent decline.
  • The euro gained less than 0.05 percent to $1.1771.
  • The British pound rose 0.1 percent to $1.3348.
  • The Japanese yen climbed 0.1 percent to 113.48 per dollar.


  • The yield on 10-year Treasuries fell one basis point to 2.38 percent.
  • Germany’s 10-year yield gained less than one basis point to 0.30 percent.
  • Britain’s 10-year yield climbed one basis point to 1.211 percent.
  • Japan’s 10-year yield dipped less than one basis point to 0.047 percent, the lowest in a week.


  • West Texas Intermediate crude rose 0.7 percent to $58.40 a barrel, the highest in more than two weeks.
  • Gold increased 0.1 percent to $1,243.48 an ounce.
  • Copper declined 0.2 percent to $3.01 a pound.

Opening Bell: USD Falls, Brent Oil Leaps; Tech Stocks Back On Top

Related Articles

Michael Pento
Recession Questions Answered By Michael Pento - Jun 28, 2022 1

President Joe Biden, Treasury Secretary Janet Yellen, the entirety of the money printers who inhabit the Federal Reserve, and virtually all of the deep state of Wall Street are...

Antonio Ferlito
Is This A Fake Market Rebound?   By Antonio Ferlito - Jun 28, 2022 1

The EU and US futures are slightly up at the time of writing. The Wall Street rally continues and is inspiring stock exchanges in the Asia Pacific and Europe, all up at the start...

Opening Bell: USD Falls, Brent Oil Leaps; Tech Stocks Back On Top

Add a Comment

Comment Guidelines

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.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

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'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.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email