Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Opening Bell: U.S. Futures Shake Off China’s Commodity Crackdown; Metals Fall

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewMay 24, 2021 07:31AM ET
www.investing.com/analysis/opening-bell-us-futures-shake-off-chinas-commodity-crackdown-metals-fall-200581993
Opening Bell: U.S. Futures Shake Off China’s Commodity Crackdown; Metals Fall
By Investing.com (Pinchas Cohen/Investing.com)   |  May 24, 2021 07:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NQZ2
-0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SRRc1
+0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TIOc1
+2.24%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNH
+0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BTC/USD
+1.52%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MIAP0...
+0.76%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • Steel and iron ore plummet
  • Bitcoin rebounds above $36,000
  • US dollar slides

Key Events

Stocks in Europe opened higher, boosting futures on the Dow, S&P, NASDAQ and Russell 2000. Asian benchmarks were mixed, after China’s clampdown on "speculators and hoarders" of industrial commodities dented mining-related companies.

Gold wavered while yields were slightly lower.

Global Financial Affairs

All four US contracts were about 0.5% in the green, at time of writing, with stocks on the tech-heavy NASDAQ 100—representing one side of the reflation trade—and Russell 2000 futures—representing value stocks and the opposite side of the reflation trade—moving in unison. Both indexes were slightly outperforming the S&P 500 and Dow Jones, which were ranging around 0.40%. The current picture suggests that after reflecting on the markets' whipsaws last week, traders are ready to get back into equities.

The S&P 500 Index was little changed on Friday, as technicals kept it under pressure.

S&P Daily
S&P Daily

The broad benchmark completed a bullish wedge, but Friday’s bearish shooting-star demonstrates that it ain’t over till the fat bear sings.

The STOXX 600 Index was pulled in two different directions. Banks and technology stocks—normally possessing a negative correlation within the reflation trade—outperformed, while mining firms lagged, after China's warning. Steel plunged over 5%, and iron ore tumbled nearly 10%, almost triggering its daily limit.

Asian gauges were uneven, the MSCI’s broadest index of Asia-Pacific outside Japan edged 0.1% lower amid thin trading. China’s Shanghai Composite (+0.3%) was the best performing index in the region while South Korea’s KOSPI (-0.4%) underperformed.

Last week stocks were volatile, which led to a debate on whether the recent bloodbath seen in cryptos might be the cause. We maintain it is.

Bitcoin rebounded after a deeper fall on Saturday that took it below its uptrend line since the October low. We, however, are more concerned about horizontal, constant supports, such as the January lows. A break below $29,000 will likely see an extended drop. We, however, are holding  out for a return to an advance after the cryptocurrency more than halved in value, fulfilling our target fully.

Yields on the 10-year Treasury note—which have started the inflation panic—have been ranging since March in a symmetrical triangle.

10-year Treasuries Daily
10-year Treasuries Daily

While there tend to be pauses within the underlying trend, which is up, the direction of the breakout will determine the digital token's continued path.

The dollar fell, within what seems to be a bearish pennant, whose downside breakout will challenge our recent bull call.

Dollar Index Daily
Dollar Index Daily

A fall below the Jan. 6 low of 89.21 will turn us back bearish again, after the massive wedge since the 2020 peak turned us bullish, which worked out till breakout turned into a smaller, bearish wedge.

Gold was flat after giving up daily highs for the fourth day, as it struggles to break free of its current rate of ascent in the form of a rising channel.

Gold Daily
Gold Daily

We expect the precious metal to retest the channel’s bottom, as well as the top of the recently broken falling channel since the 2020 record peak.

WTI crude oil traded around $64 a barrel amid further signs the US is recovering from the pandemic which will boost demand. Traders also monitored progress in US/Iran talks on reviving an Iranian nuclear deal that could lead to increased global crude supply.

Up Ahead

  • Consensus by CoinDesk is bringing prominent crypto voices together to discuss NFTs, exchanges and the role of central banks until May 27. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will participate.
  • On Tuesday, the Bank of Indonesia publishes its rate decision.
  • On Wednesday, the Reserve Bank of New Zealand announces its policy decision.
  • The CEOs of the largest US banks, including JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS), will testify before lawmakers in the Senate Banking and House Financial Services committees on Wednesday.

Market Moves

Stocks

  • The STOXX 600 was little changed
  • Futures on the S&P 500 rose 0.4%
  • Futures on the NASDAQ 100 rose 0.3%
  • Futures on the Dow Jones Industrial Average rose 0.5%
  • The MSCI Asia Pacific Index rose 0.1%
  • The MSCI Emerging Markets Index fell 0.2%

Currencies

Bonds

  • The yield on 10-year Treasuries declined one basis point to 1.61%
  • Germany’s 10-year yield declined one basis point to -0.14%
  • Britain’s 10-year yield declined two basis points to 0.81%

Commodities

Opening Bell: U.S. Futures Shake Off China’s Commodity Crackdown; Metals Fall
 

Related Articles

Opening Bell: U.S. Futures Shake Off China’s Commodity Crackdown; Metals Fall

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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 (8)
sanjib Limbu
sanjib Limbu May 25, 2021 12:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello sir
Nnadozie David
Nnadozie David May 24, 2021 12:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
any advice from anybody
Pinchas Cohen
Pinchas Cohen May 24, 2021 12:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes, if you're asking that, don't trade.
Nnadozie David
Nnadozie David May 24, 2021 12:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all the prices are up I don't know what to invest in am just a little bit afraid because it can come down
Pinchas Cohen
Pinchas Cohen May 24, 2021 12:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Then, do not invest.
pritesh jain
pritesh jain May 24, 2021 9:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what about copper
SCOTT NIETO
SCOTT NIETO May 24, 2021 8:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thank you
soma sundar
soma sundar May 24, 2021 8:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nice information
ojo temitope
ojo temitope May 24, 2021 7:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
afternoon
sus kumarv
sus kumarv May 24, 2021 7:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 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.

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
or
Sign up with Email