Opening Bell: Global Stocks Still Hostage To Trade Uncertainty; Gold Gains

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  • U.S. futures attempt rebound from steepest U.S. stock tumble since Christmas-eve rout
  • European, Asian shares keep sliding; Chinese assets take a hit from trade balance data
  • Yen and gold continue climbing
  • Oil struggles to stay north of $60

Key Events

Futures on the , and pared some of the steep losses that sent U.S. stocks to the worst selloff since the Christmas-eve rout on Tuesday—suggesting the global equity market may be starting to stabilize, though lingering in red territory and giving up some of those early gains in the late European morning.

On the other side of the Atlantic, Europe’s opened lower, somewhat extending yesterday’s fall, after it closed below the 50 DMA. Gains in Technology offset a drop in insurance companies. Meanwhile, positive German pulled the higher.

In the earlier Asian session, Japan’s (-1.46%) suffered the second day of deep losses, paying the the price for a ten-day holiday. Hong Kong’s (-1.23%) also took a beating and China’s gave up 1.12% amid renewed concerns of worsening trade relationships with the U.S..

Global Financial Affairs

Yields on Treasurys found support by a potential neckline for a H&S top, as investors rotated out of stocks and into bonds on risk off.

The continued to strengthen, presumably on its safe-haven status, though there are .

XAU/USD Daily Chart - Powered by TradingView

XAU/USD Daily Chart – Powered by TradingView

extended a short-term climb since the beginning of the month, but it isn’t clear the yellow metal was helped by investors seeking shelter or the weakening . Technically, the price is struggling against the resistance of the neckline of a H&S top—making it an ideal shorting position from a risk-reward ratio.

The renewed trade risk has injected a large dose of caution into a market we have repeatedly criticized for being too optimistic, pushing it way back from record high levels. Meanwhile, as if to add insult to injury to Chinese officials after Trump’s most recent backlash, in the Asian country unexpectedly fell in April, and rose. How might this economic development affect negotiations?

rebounded back above the $60 levels, toward $62, but later resumed to edge lower. Technically, the price is struggling against the neckline of a H&S top, after the price slipped below the uptrend line since the beginning of the year. Meanwhile, the price found support by the 200 DMA after the 50 DMA crossed above it for a golden cross. From a fundamentals perspective, U.S. sanctions on Iran and Venezuela are yielding that may further move oil prices.

Up Ahead

  • Walt Disney (NYSE:) releases after market close on Wednesday, with forecasts of $1.57 EPS and £14.48bn revenue. Analysts expect the entertainment giant to from its business’ strengths, as well as from its plans to take on rivals in the video-streaming market.
  • Chinese Vice Premier Liu He is scheduled to return to Washington for trade talks on Wednesday.
  • China reports on on Thursday.
  • come out on Thursday.
  • The U.S. releases April data on Friday.

Market Moves

  • The U.K.’s fell 0.1% to the lowest in almost six weeks.
  • The gave up 1% to the lowest in almost six weeks.
  • The slipped 0.5% to the lowest in almost six weeks.

Currencies

  • The Dollar Index slid less than 0.1%.
  • The euro gained 0.1% to $1.1205, the strongest in more than a week.
  • The dropped 0.2% to $1.3052.
  • The Japanese yen rose 0.1% to 110.11 per dollar, the strongest in more than six weeks.

Bonds

  • The yield on 10-year Treasurys climbed less than one basis point to 2.46%.
  • Germany’s yield gained less than one basis point to -0.04%.
  • Britain’s yield fell one basis point to 1.147%, the lowest in more than a week.

Commodities

  • Gold climbed 0.3% to $1,287.95 an ounce, the highest in almost four weeks.
  • West Texas Intermediate crude rose 1% to $62.03 a barrel, the biggest advance in more than two weeks.





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