Opening Bell: Trade Hopes Revive Global Stock Rally; Pound Rewards Brexit Shift
Investing.com | Apr 03, 2019 08:41
- U.S. futures climb on reported trade deal progress; STOXX 600 triggers golden cross
- Asian and U.S. stocks complete bullish patterns
- Treasurys, yen, dollar drop; Oil hits 4-month high
- Pound rallies as U.K. PM May meets opposition leader to break Brexit impasse h2 Key Events/h2
-
Canadian Ivey PMI for March is released Thursday.
-
Canadian Employment Change for March is released Friday.
- India’s central bank will set policy on Thursday.
- The monthly U.S. hourly earnings growing at a strong rate.
-
Canada’s S&P/TSX Composite closed up 0.22 percent Tuesday.
- The MSCI Asia Pacific Index rose 0.7%.
- The Euro Stoxx 50 Volatility Index slid less than 0.05%.
-
The Canadian loonie was up 0.21 percent against the U.S. greenback early Wednesday, trading at 0.7512.
- The Dollar Index fell 0.1%.
- The euro advanced 0.1% to $1.1217 and the largest gain in two weeks.
- The Japanese yen slipped 0.2% to 111.54 per dollar.
- The MSCI Emerging Markets Currency Index rose 0.3%.
- The Australian dollar advanced 0.6% to the strongest level in more than a week on the biggest rise in two months.
-
Canada’s 10-year yield was up early Wednesday at 1.710, a 2.58-percent increase.
- The yield on 10-year Treasurys rose four basis points to 2.52%.
- The yield on 2-year Treasurys climbed three basis points to 2.33%.
- Germany’s 10-year yield gained four basis points to -0.01%.
- France’s 10-year yield edged three basis points higher.
- Brent crude rose 0.6% to $69.79 a barrel.
- Iron ore rallied 3% to $90.42 per metric ton.
Global equities and futures on the yen extended a selloff. China's Vice Premier Liu He's visit to Washington to continue trade talks swayed the sentiment-pendulum back to the hopeful side—a shift that was also helped by upbeat service sector readings from both Europe and China.
The services PMI hit its highest level since December. Automobiles and miners outperforming once again. Technically, the price posted a fresh short-term peak, extending the uptrend since the late December bottom, to reach the highest level since early August. Through the rally, the gauge’s 50 DMA crossed above the 200 DMA, triggering a golden cross.
In the earlier Asian session, regional indices closed higher, after the Financial Times reported that U.S. and China negotiators were close to reaching an agreement, having resolved "most of the issues standing in the way of a deal."
China’s NASDAQ Composite was the only index to build on previous gains, edging 0.25% higher.
The after an upside breakout of a bullish pattern.
Dow Jones Industrial Average Daily Chart
The earnings .
Technically, the index pared gains after finally joining the rally, making new highs for the post-Christmas uptrend and beating the Nov. 8 peak, to reach the highest close since Oct. 8. The fresh short-term uptrend high coincided with an upside breakout of a symmetrical triangle, bullish in an uptrend, and therefore suggests a continued rally to retest the October peak.
The Russell 2000 slipped 0.17%.
UST 10-Year Daily Chart
Yields on 10-year Treasurys jumped for the fifth day out of six, bouncing from the lowest level since December 2017. We consider the rally to be short-term, as it is an upward correction within a downtrend.
Get The App
The Treasury slide lead to a gold clung on to profits.
GBP Daily Chart
The pound strengthened for a third day as markets seemed to reward U.K. Prime Minister Theresa May's move to favor a cross-party approach with Labour Party leader Jeremy Corbyn to break a long-standing Brexit deadlock. Technically, the currency bounced off its uptrend line.
WTI Daily Chart
The price of WTI climbed for the fourth consecutive day, hitting a four-month high inches away the $63 mark, after OPEC+ oil producers signalled further supply tightening. Technically, the rally proves our calls over four small bullish pattern within a massive bottom.
h2 Up Ahead/h2Stocks
Currencies
Bonds
Commodities
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.