Breaking News
0

Opening Bell: U.S. Futures Slide; Chinese Assets Tumble; Oil Jumps

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewApr 22, 2019 06:35AM ET
www.investing.com/analysis/opening-bell-200408973
Opening Bell: U.S. Futures Slide; Chinese Assets Tumble; Oil Jumps
By Investing.com (Pinchas Cohen/Investing.com)   |  Apr 22, 2019 06:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • 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

Key Events

Futures on the S&P 500, Dow and 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
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 Nikkei 225 eked out a gain (+0.14%), with big names like Softbank Group (T:9984), Fanuc (T:6954) and Fast Retailing (T:9983) weighing on the index. Seoul’s KOSPI closed mostly flat (+0.02%), with chipmaker SK Hynix (KS:000660) (-0.25%) dragging prices lower.

Shanghai Composite Daily Chart - Powered by TradingView
Shanghai Composite Daily Chart - Powered by TradingView

China’s Shanghai Composite (-1.7%) underperformed on speculation the local government 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
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.

Global Financial Affairs

On 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.

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 red flags to watch and a lack of forceful catalysts.

WTI Daily Chart - Powered by TradingView
WTI Daily Chart - Powered by TradingView

In commodities, oil gapped up, jumping more than 2% after the U.S. said it plans to stop Iran oil waivers. The leap prompted a breakaway upside gap, whose bullishness is compounded by the completion a falling flag. However, that doesn’t mean the WTI price won’t retest the dual support of the gap’s bottom and flag’s top. As of the time of writing, the price has been trendless for the fifth consecutive hour.

Up Ahead

  • The Bank of Japan, Bank of Canada, Bank of Russia, Sweden’s Riksbank and Bank of Indonesia all set monetary policy this week.
  • 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.

Earnings

  • Twitter (NYSE:TWTR) is scheduled to post earnings before market open on Tuesday, with expectations of $0.06$ EPS, from $0.09 in the same quarter last year. The social media company may soon start to reap the benefits of its recent efforts to step up both transparency and user experience standards.
  • Microsoft (NASDAQ:MSFT) reports results after market close on Wednesday, with an EPS of $1, from the $0.95 it posted last year.
  • Facebook (NASDAQ:FB) is expected to 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) is due to 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 Deutsche Bank (DE:DBKGn), UBS (NYSE:UBS), Barclays (LON:BARC), Credit Suisse (SIX:CSGN) and Swedbank (ST:SWEDa).

Market Moves

Stocks

Currencies

Bonds

  • 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.
Opening Bell: U.S. Futures Slide; Chinese Assets Tumble; Oil Jumps
 

Related Articles

Opening Bell: U.S. Futures Slide; Chinese Assets Tumble; Oil Jumps

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email