Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Opening Bell: China Slowdown Offsets Trade Hopes; Stocks Mixed, Oil Gains

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewNov 27, 2019 08:11
ca.investing.com/analysis/opening-bell-china-slowdown-offsets-trade-hopes-stocks-mixed--oil-gains-200431664
Opening Bell: China Slowdown Offsets Trade Hopes; Stocks Mixed, Oil Gains
By Investing.com (Pinchas Cohen/Investing.com)   |  Nov 27, 2019 08:11
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
CL
-1.75%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BTC/USD
+0.78%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TIOc1
+0.46%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MIAP0...
+0.54%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MIWD0...
+0.79%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX
+0.26%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

  • Chinese economy slows for the 7th month
  • U.S. HK policy fosters additional uncertainty on trade deal
  • Australia outperforms on central bank stimulus plans
  • Key Events

    Asia market exuberance this morning, fueled by yesterday's additional day of new Wall Street records, was trimmed back as the day progressed, pressured by China's shrinking economy which weighed on U.S. futures—including for the S&P 500, Dow Jones and NASDAQ—and European shares. The opening advance in the STOXX Europe 600 Index slipped, with declines in travel and leisure companies offsetting gains for miners.

    SPX Futures Hourly Chart
    SPX Futures Hourly Chart

    Contracts on the major U.S. indices whipsawed, as prices struggled to maintain the recent sharp incline that's been driven by repeated record-breaking U.S. sessions. On the hourly SPX chart, the 3144 level has been a significant support/resistance position in maintaining the uptrend.

    Equities rose across Asia except in China, as investors monitored Sino-U.S. trade negotiation developments. Australia’s ASX 200 outperformed (+0.93%) after the country’s central bank laid out a road map for rate cuts and quantitative easing.

    Global Financial Affairs

    China’s Shanghai Composite underperformed (-0.13) as the Asian country's industrial profits fell 9.9% in October, on an annual basis. It was the sharpest decline for the metric in eight months, fueled by falling demand both domestically and abroad. This marks the seventh month of slowing growth for the world's second largest economy. Chinese sales managers report the worst conditions on record, with both manufacturing and services in contraction. Nevertheless, the yuan strengthened.

    Yesterday, U.S. President Donald Trump declared that talks on the first phase of a deal were nearly done after negotiators from both sides spoke by telephone. Nevertheless, the path to an actual resolution is rife with potholes. U.S. support for Hong Kong's pro-democracy protestors, via Congressional legislation currently sitting on the president’s desk, is something of a potential ticking time bomb, with ongoing conflicting reports about Trump's intentions—whether he'll sign or veto.

    Adding to the dizzying array of geopolitical hurdles making life for investors even more difficult there's the U.S. president's reelection bid even as the possibility of impeachment looms. And finally, there's China’s consistently shrinking growth. Still, the market has remained optimistic, relying on the incentives for a trade resolution on both sides: China’s economy and Trump’s reelection.

    US 10-Y Daily
    US 10-Y Daily

    Yields, including for the U.S. 10-year Treasury note, are falling, for the fourth straight session, moving below the long-term downtrend line since November 2018. The activity is set to challenge a recent uptrend line since Nov. 1 of this year—while rates range within a short-term rising channel since the Sept. 3 bottom.

    DXY Daily
    DXY Daily

    The dollar climbed, fluctuating below its highest level since Sept. 23, while the USD trades within a rising channel since Nov. 1.

    Bitcoin, as expected, reached its lowest level since May 10, as it moved below $6,900 before reversing higher.

    WTI Daily
    WTI Daily

    Oil held on to two days of gains, as optimism that a limited trade deal is getting closer offset an industry report showing an increase in U.S. crude stockpiles. Technically, the price is trading a third of a percent below the highest level since Sept. 17, near the top of a rising channel.

    Investors are awaiting fresh U.S. home sales data, a key measure of inflation, and Washington’s latest quarterly estimate of economic growth, both to be released later today.

    Up Ahead

    Market Moves

    Stocks

    Currencies

    • The Dollar Index gained 0.15%.

  • The British pound fell 0.2% to $1.2842.
  • The euro dipped 0.1% to $1.1009.
  • The Japanese yen weakened 0.2% to 109.19 per dollar.
  • Bonds

    • The yield on 10-year Treasuries dipped less than one basis point to 1.74%.
    • Germany’s 10-year yield fell two basis points to -0.37%.
    • Italy’s 10-year yield declined one basis point to 1.157%.

    Commodities

    • West Texas Intermediate crude was little changed at $58.34 a barrel.

  • Iron ore dipped 2.2% to $83.53 per metric ton.
  • Gold fell 0.1% to $1,459.26 an ounce.
  • Opening Bell: China Slowdown Offsets Trade Hopes; Stocks Mixed, Oil Gains
     

    Related Articles

    FactSet Research Systems Inc
    Podcast : Financial Market Preview - Friday 27-Jan By FactSet Research Systems Inc - Jan 27, 2023

    US futures are pointing to a slightly lower open, and they lack positive momentum after Intel (NASDAQ:INTC) missed on sales and earnings. European equity markets have opened firmer...

    Opening Bell: China Slowdown Offsets Trade Hopes; Stocks Mixed, Oil Gains

    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
    Continue with Google
    or
    Sign up with Email