Investing.com | Oct 14, 2020 07:17
US contracts, including for the Dow, S&P, NASDAQ and Russell 2000, as well as European stocks waver on Wednesday ahead of earnings from big banks including Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC).
US futures fell early in pre-US market open trading as investors' hopes that earnings season would provide some upward impetus waned. Sentiment deteriorated on the news that coronavirus hospitalizations in the US hit their highest level in six weeks and as optimism of an economic stimulus package continued to evaporate.
The European Stoxx 600 Index whipsawed, opening lower, extending its decline, then rebounding only to fall back again into the red, bank shares rose while travel shares fell on increased fears of additional lockdowns.
From a technical perspective, the pan-European index struggled against resistance of the top of a rounding range since early June.
Most of the Asian benchmarks slumped on pandemic jitters, ending a four-day rally. Escalating coronavirus cases combined with stalling progress on a vaccine weighed on traders. Japan’s Nikkei 225 (+0.1%) and Hong Kong’s Hang Seng (+0.07%) were the exceptions.
The Nikkei's slight advance was led by Paper & Pulp, Railway & Bus and Real Estate. All rebounded from a lower open and disappointing industrial production data.
The Hang Seng opened slightly higher from the outset, as traders returned after the city’s markets were shut Tuesday during tropical storm Nangka. Investors were bouyed by better-than expected Chinese data.
South Korea’s KOSPI fell almost a full percent, lagging regional peers, as spiking COVID cases countered expectations of an immediate economic recovery.
China’s Shanghai Composite dipped 0.6%, bogged down by both profit-taking on agricultural stocks, after a steep advance, and investors forced to liquidate holdings to raise cash due to new debt-ratio caps.
US stocks dropped on Tuesday as traders priced out another round of coronavirus fiscal aid due to a stalemate between President Donald Trump and his own party on Speaker Nancy Pelosi’s demand that the administration revamp its offer. Senate Republican majority leader Mitch McConnell’s desire to vote next week on only a single stimulus provision provoked the President to tweet:
“Go big or go home!!”
Banks led the declines on the S&P 500 Index during yesterday's Wall St. session, with JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C) selling off ahead of earnings, spurring bargain hunters to buy the dip, leading to a futures rally in pre-US open trading today.
Yields, including for the 10-year Treasury note, extended a decline after managing to remain above the 200 DMA for three days.
They have been falling toward the bottom of a rising channel since the early-August low.
The dollar jumped with the increased demand for Treasuries, extending a climb back above the neckline of a bottom.
Will the greenback manage to push back into the short-term rising channel and break free of the falling channel since the March high? Indicators suggest otherwise.
Gold advanced despite a strengthening dollar and rising futures and stocks, leaving technicals as the only remaining explanation.
The yellow metal rebounded off the bottom of a range, a potential bearish flag, following a bearish symmetrical triangle—both of which are trapped within a bullish falling wedge. The direction of the breakout will set the momentum for the following move.
Oil was little changed after fluctuating, as Saudi Crown Prince Mohammed Bin Salman and Russian President Vladimir Putin urged peers to honor an agreement on cuts.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.