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: Futures, Europe Stocks Advance Ahead Of Key U.S. Economic Data

By (Pinchas Cohen/ OverviewMay 11, 2022 07:58AM ET
Opening Bell: Futures, Europe Stocks Advance Ahead Of Key U.S. Economic Data
By (Pinchas Cohen/   |  May 11, 2022 07:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • Will CPI data settle the ongoing inflation debate?
  • Oil recovers as China's COVID spread slows
  • Bitcoin recovers

Key Events

On Wednesday, European stocks and futures on the Dow Jones, S&P 500, NASDAQ 100 and Russell 2000 continue to move higher ahead of key US inflation data which will be released ahead of the US open today.

Treasury yields slid.

Global Financial Affairs

All four US contracts were green, with NASDAQ 100 futures outperforming for the second straight day. Recently, the tech-heavy gauge and the Russell 2000 have led selloffs and advances.

Both indices have the most to lose with higher interest rates so when the market thinks that the US Federal Reserve will continue aggressively hiking rates, the interest-rate-sensitive gauges underperform. Conversely, when the view is that inflation is peaking, the indices enjoy a buying dip.

In Europe, stocks on the STOXX 600 extended a rebound to a second day after falling to a two-month low on the back of a rally in real estate stocks. However, the index found the same resistance as yesterday when the pan-European gauge closed well off its highs.

Most Asian indices rose, with Chinese shares taking the lead as COVID case numbers decline there. Investors are optimistic that the government will ease its coronavirus restrictions and this helped push the Shanghai Composite up 0.75%. However, from a technical perspective, we are less positive on the outlook.

SSEC Daily
SSEC Daily

The Chinese benchmark closed well off its highs, forming a bearish Shooting Star, reinforcing the May 5 high resistance. The gauge appears to be developing a Rising Flag, bearish after the preceding double-digit decline in a week. Finally, the flag's position confirms the Falling Channel.

South Korea's KOSPI was the only primary regional index in the red. The Korean gauge fell for the seventh consecutive session, its longest losing streak in 9 months.

The KOSPI dropped to a 17-month low amid stagflation concerns. Stagflation is when there is high inflation at the same time as shrinking economic growth and high unemployment. This economic environment is difficult for policymakers, as raising interest rates to rein in inflation would further damage unemployment.


The Korean benchmark completed a bearish triangle, confirming an H&S top.

On Tuesday, the S&P 500 Index rebounded from a decline that wiped out $9 trillion from the US stock market this year. Still, persistent supply pushed the index to close well off intraday highs.

S&P 500 Daily
S&P 500 Daily

The S&P 500 may have completed a Downward Sloping H&S top. That variation occurs when demand is too weak to support the price enough to form a right shoulder symmetrical to the pattern's left one.

The price closed below the neckline for the second day, having provided a decisive downside breakout to a bearish pennant, including a breakaway gap. The price, however, may find support at the bottom of a falling channel.

Treasury yields on the 10-year note fell for the third day, for the first time since Apr. 26, as investors have been rotating into bonds from stocks. Yields slipped as inflation fears gripped the bond market.

The dollar fell, but we expect it to return to a rally.

Dollar Index Daily
Dollar Index Daily

The greenback remained bullish after the preceding sharp advance for the fifth day above a Falling Flag.

In a mirror image of dollar weakness, gold rose. However, there is also a technical impetus for the yellow metal's rebound from its two-day rout.

Gold Daily
Gold Daily

The price found support above the uptrend line since the August low. However, the real test will be whether the preceding triangle will retain its bearish stronghold.

Bitcoin advanced after finding support yesterday at the $30K level.

Bitcoin Daily
Bitcoin Daily

If the cryptocurrency breaks it, it could complete a massive Double Top, potentially putting the experiment out of business.

Oil rebounded from a two-day selloff on China's declining coronavirus cases which improved the economic outlook from the commodity's largest global importer.

Oil Daily
Oil Daily

The price found support above the triangle, as we expected.

Up Ahead

Market Moves


  • The MSCI Asia Pacific Index rose 0.1%
  • The MSCI Emerging Markets Index rose 0.4%



  • Britain's 10-year yield fell two basis points to 1.83%


Opening Bell: Futures, Europe Stocks Advance Ahead Of Key U.S. Economic Data

Related Articles

Michael Lebowitz
Snap Goes The Economy By Michael Lebowitz - May 25, 2022

“…the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month.” -Snap CEO Evan...

Tim Ord
S&P 500: Rebound Came In Low Volume By Tim Ord - May 25, 2022

SPX Monitoring purposes; Sold 5/24/22 at 3941.65= gain 1.033%; Long SPX on 5/20/22 at 3901.36. Monitoring purposes GOLD:  Long GDX (NYSE:GDX) on 10/9/20 at 40.78. Long Term SPX...

Opening Bell: Futures, Europe Stocks Advance Ahead Of Key U.S. Economic Data

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.
Comments (1)
Kaushal Shah
Kaushal Shah May 11, 2022 8:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
inflation data will be good as 50 basis point rate hike is sufficient for global inflation.🤣🤣🤣🤣
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