Investing.com | May 05, 2020 06:36
Though the brewing US-China trade war slid into the fuzzy background, economic data still paints a dismal picture, but investors may now be pricing that in.
Oil climbed for the fifth straight day, breaking above the $20 level, its longest advance in nine months.
All four major US futures were up at least 1%, with Russell futures over 2%, suggesting the underlying indices will extend yesterday’s rebound on Wall Street.
Contracts on the S&P 500 climbed for the second day, after falling below their uptrend line since the March low. The advance-decline line indicates that participation has been falling since the March bottom, triggering a negative divergence.
The STOXX Europe 600 Index jumped 1.7%, ending a three-day loss, led higher by French energy major Total (PA:TOTF), which jumped as much as 7.9%, even after reporting a 35% drop in quarterly profits, after the company kept dividends unchanged from a year ago and increased its commitment to almost eliminate its carbon emissions by 2050 while curbing investments on oil and gas projects.
The pan-European index confirmed a falling, bullish wedge, after the release of a batch of positive corporate results.
BNP Paribas SA (PA:BNPP) surged 6.5% to €28.57, even after negative guidance due to COVID-19, because the bank said it had set aside cash to cover faulty loans. From a technical perspective, the stock will have to break through the €31.09, the April 29 high, to complete a bottom. Conversely, a fall below the €24.50 low of April 3 will signal revisiting the 2012 lows, below €25.
Stocks in Asia took their cues from Monday's Wall Street rebound, flipping from a third day of losses to an advance—boosted by rising oil prices along with easing lockdown restrictions. Australia’s ASX 200 led the advance, (+1.64%). Japanese, Chinese and South Korean markets were closed on a holiday.
Yesterday, US investors turned positive late in the Wall Street session after California's Governor, Gavin Newsom said the state was looking to ease lockdown restrictions, after reporting the fewest coronavirus deaths in three weeks.
The yield on the US 10-year Treasury climbed for a second day, the highest point since April 14.
The benchmark note is testing the top of a possible descending triangle, expected to break to the downside after its sharp plunge since COVID-19 hit markets. However, the earlier spikes—in both directions—marked by the dotted lines, make it difficult to interpret upcoming moves.
The US dollar trimmed yesterday's gains.
The currency struggled for the second day, right on the bottom of a descending triangle, uncharacteristically following a drop, demonstrating the price level as a technical pressure point.
Gold fell too.
The yellow metal is trading along a pennant, expected to be bullish, following the preceding rally, which itself completed a H&S continuation pattern.
Oil prices jumped for the fifth straight day, the longest winning streak for the commodity in nine months.
Incredibly, WTI broke through our $20 red line, passing $22, as production cuts put in place by global oil producers including OPEC+ ease supply while lockdown loosening is expected to boost demand. Our expectation is that oil will range between $20 and $28 now, from the March lows to April highs.
Written By: Investing.com
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.
More markets insights, more alerts, more ways to customize assets watchlists only on the App
More content, faster quotes and charts, and a smoother experience is available only on the App.