Opening Bell: U.S. Futures Slide; Chinese Assets Tumble; Oil Jumps
Investing.com | Apr 22, 2019 09:14
- U.S. futures point to weak open, but S&P 500 contracts find support
- Chinese shares tumble on signs policymakers may dial back stimulus
- Oil jumps on prospects of U.S. withdrawal of Iranian sanctions waivers h2 Key Events/h2
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Canadian Wholesale Sales for February are released on Tuesday.
- Germany’s IFO data is released on Wednesday.
- Japan’s Prime Minister Shinzo Abe meets leaders from the European Union on Thursday before flying to the U.S. for a summit with President Donald Trump.
- The initial print of first-quarter U.S. GDP will be closely watched on Friday for clues as to how the economy responded to the government shutdown and to the fourth-quarter market rout.
Futures on the NASDAQ 100 edged lower this morning, after Asian stocks swung between gains and losses at the end of the extended Easter holiday weekend.
S&P 500 Futures Hourly Chart - Powered by TradingView
SPX contracts, however, seemed to have found support, bouncing off the 200-hour MA at around 9PM EDT.
In the Asian session, Japan’s 000660 ) (-0.25%) dragging prices lower.
Shanghai Composite Daily Chart - Powered by TradingView
China’s will wind down stimulus . Technically, the price met resistance at the Apr. 8 highs, setting the stage for a small double top and the potential for a larger H&S top.
China 10-Year Yield Daily Chart - Powered by TradingView
Investors shed Chinese bonds alongside equities, pushing the yield on 10-year notes higher. Technically, the price hit a pause around the 200 DMA, forming a pennant continuation pattern, following the completion of a double-bottom early in the month. The RSI, however, sets up a potential H&S top, as the MACD tops out.
Markets in Hong Kong and Australia remained closed for the holiday.
h2 Global Financial Affairs/h2On Thursday, U.S. stocks wrapped up the holiday-shortened week slightly lower, giving up a three-week rally despite some upbeat corporate earnings results and better-than-expected manufacturing data in China, which had boosted sentiment across global markets earlier in the week.
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With U.S. equities still nearing all-time highs, traders will have to determine whether the recent shift, by global central banks, to a dovish stance will be enough to compensate for an overall expectation of contracting earnings, amid some ongoing lack of forceful catalysts .
WTI Daily Chart - Powered by TradingView
In commodities, Bank of Indonesia all set monetary policy this week.
Earnings
- Twitter (NYSE:its recent efforts to step up both transparency and user experience standards.
- Microsoft (NASDAQ:MSFT) (NASDAQ:reports results after market close on Wednesday, with an EPS of $1, from the $0.95 it posted last year.
- Facebook (NASDAQ:FB) (NASDAQ:release earnings after market close on Wednesday, with a $1.65 EPS, slightly lower than the $1.69 it posted last year.
- Amazon (NASDAQ:AMZN) (NASDAQ:report earnings after market close on Thursday, with a $4.61 EPS forecast, from $3.27 last year.
- European bank earnings kick into full gear with reports from SWEDa ).
Stocks
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Canada’s S&P/TSX Composite closed up 0.41 percent last Friday.
- The MSCI Asia Pacific Index slid 0.1%.
- Japan’s TOPIX rose 0.1%.
Currencies
- The Canadian loonie was up 0.15 percent against the U.S. greenback early Monday, trading at 0.7480.
- The Dollar Index rose less than 0.1%.
- The yen was steady at 111.92 per dollar.
- The euro was flat at $1.1242.
- The offshore yuan fell 0.2% to 6.7127 per dollar.
- The British pound was steady at $1.2996.
Bonds
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Canada’s 10-year yield was up early Monday at 1.774, a 0.45-percent increase.
- The yield on 10-year Treasurys gained one basis point to 2.57%.
Commodities
- West Texas crude surged 2.3% to $65.44 a barrel.
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