Investing.com | Apr 15, 2019 08:43
European stocks and futures on the NASDAQ 100 oscillated this morning after most Asian shares closed well off their highs or even at losses, despite positive economic data from China and upbeat earnings results from U.S. banks on Friday.
The STOXX 600 edged lower as gains in banking shares were offset by a slide in food and beverage stocks. However, the pan-European benchmark reversed to climb into green territory by the late European morning. Technically, the price of the index is trading within a falling flag—bullish following the 4% jump of March 25-Apr. 3.
In the earlier Asian session, regional equities staggered after racing toward 9-month highs as U.S. Treasury Secretary Steven Mnuchin and Chinese foreign ministry spokesman Lu Kang boosted hopes for an imminent trade deal, while credit data from China came in higher than expected.
China’s Shanghai Composite (-0.34%) gave up a 2.05% surge, to close 1.06% away from the highest levels since March last year. Why would Chinese shares falter just when trade optimism is pointing higher? While as of the time of writing there were no known fundamentals to explain this counterintuitive move, technically we consider it a downward correction in the form of a falling flag—bullish following the 8.57% surge in the six sessions between March 29 and Apr. 8. That itself marked a return move to an upside breakout of an ascending triangle, after the major moving averages entered a bullish formation.
Hong Kong’s Hang Seng (-0.33%) also turned a 1.41% intraday high into a loss.
While South Korea’s KOSPI (+0.42%) closed at the highest levels since early October, a shooting star trading pattern opened the potential for a double top with February highs, right as the 50 DMA managed to crawl above the 200 DMA for a golden cross. The current resistance is formed by the July-October lows. After the double bottom formed in November-December, we are witnessing a titanic battle between bulls and bears for the medium- to long-term trends.
Australia’s S&P/ASX 200 traded between a 0.13% gain and a 0.20% slide, to close at neutral levels.
Japan’s Mega caps , however, underperformed.
After the International Monetary Fund reduced its outlook for global growth to the slowest pace since the financial crisis as a result of trade tariff headwinds, G-20 finance leaders lifted spirits by pointing to an increase in the global economic growth rate on the back of central banks' monetary easing.
Meanwhile, earnings beats from the likes of APC ) in a giant $33 billion deal on Friday.
Yields on dollar dropped for a second day after U.S President Donald Trump resumed his attack on the Fed, blaming it for the lack of a better stock market performance. Technically, the greenback fell toward the bottom of a potential bullish pattern—a falling flag—as bulls gear up to conquer the March 7 high.
Russia’s reported reluctance to commit to further production cuts, amid mounting concerns that high oil prices will hurt global demand.
h2 Up Ahead/h2Bank of Canada unveils its Business Outlook Survey on Monday.
Canadian Foreign Securities Purchases for February and Foreign Securities Purchase by Canadians in February are released Tuesday.
Canadian Manufacturing Sales for February are released Tuesday.
Earnings
Stocks
Canada’s S&P/TSX Composite closed up 0.49 percent last Friday.
Currencies
The Canadian loonie was up 0.15 percent against the U.S. greenback early Monday, trading at 0.7517.
Bonds
Commodities
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