Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Opening Bell: China Woes Pressure U.S. Futures, Stocks; Dollar, Yields Rally

By (Pinchas Cohen/ OverviewOct 18, 2021 07:00
Opening Bell: China Woes Pressure U.S. Futures, Stocks; Dollar, Yields Rally
By (Pinchas Cohen/   |  Oct 18, 2021 07:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • Colliding market themes continue
  • Bitcoin rallies as first US ETF due to start trading
  • Gold slides

Key Events

Disappointing growth figures from China as well as soaring energy prices globally reinforced concerns about inflation and drove US futures on the Dow, S&P, NASDAQ and Russell 2000 as well as European stocks lower in trading on Monday.

Oil rallied along with energy sector.

Global Financial Affairs

NASDAQ 100 and Russell 2000 futures outperformed contracts on the S&P 500 and the Dow Jones this morning, which is confusing for many reasons.

First, if investors are concerned about inflation, why are small caps outperforming? If the economy doesn't reopen due to the coronavirus, smaller domestic firms will suffer.

Second, why are tech contracts outperforming? Will rising interest rates allow borrowers to sustain record stock market highs?

Finally, why are the Russell and NASDAQ leading the advance when they are meant to represent two contradictory views about the fate of the economy?

We're seeing this as another example of a lack of market coherence, indicating rather clearly that the market does not always behave rationally.

It is worth noting that today's futures selloff comes on the heels of the best week for the S&P 500 since July.

In Europe the STOXX 600 also opened lower, dragged down by the consumer discretionary and retail sectors, as soaring commodity costs intensified the energy crisis. Miners and oil and gas providers were the bright spots, as they actually benefited from the spike in their underlying commodities.

Stocks in Asia were weighed down by data out of China, revealing the world’s second-largest economy grew at the slowest rate in a year during the third quarter, due to power shortages, supply chain disruptions and panic in the property market amid a regulatory crackdown on highly leveraged investments.

China’s GDP slowed to 4.9% YoY, missing the 5.2% estimates. Industrial production expanded by 3.1%, well below the 4.5% expected. Still, China’s Shanghai Composite declined by just 0.1%, and Hong Kong’s Hang Seng was 0.3% higher. But the FTSE China A50 tumbled 2.2%.

Yields on the 10-year Treasury note were boosted by inflationary fears that had investors hiding their money in bonds.

UST 10Y Daily
UST 10Y Daily

Rates are aiming to provide an upside breakout of a massive H&S bottom.

The dollar opened higher, tracking the gain in yields.

Dollar Index Daily
Dollar Index Daily

The greenback has been fluctuating for the past three weeks after completing a large double bottom. Will it extend the currency's uptrend, after establishing a major bottom?

Gold fell on the rise in yields and dollar strength. Precious metals are struggling as markets expect the Federal Reserve to start tapering in November.

Gold Daily
Gold Daily

The yellow metal may have completed a weekly H&S continuation pattern, which means it may continue along its downtrend.

Bitcoin opened higher as the first Bitcoin Futures ETF, the Bitcoin Strategy ETF (BITO), is due to start trading this week.

Bitcoin Daily
Bitcoin Daily

The cryptocurrency will battle between the bullishness of breaking higher than its rising channel and the presumed resistance of the April; record peak. The outlook for BTC remains a contentious issue in markets with some experts forecasting its ultimate demise even as others believe the crypto asset class is only heading higher.

Oil built on its eight-weekly advance, rising to its highest level since 2014. WTI gained for the third straight day, heading toward $83.

Up Ahead

Market Moves


  • The STOXX 600 fell 0.5%
  • Futures on the S&P 500 fell 0.3%
  • Futures on the NASDAQ 100 fell 0.5%
  • Futures on the Dow Jones Industrial Average fell 0.3%
  • The MSCI Asia Pacific Index rose 1.3%
  • The MSCI Emerging Markets Index rose 1.3%


  • The Dollar Spot Index rose 0.2%
  • The euro fell 0.2% to $1.1579
  • The Japanese yen fell 0.1% to 114.37 per dollar
  • The offshore yuan was little changed at 6.4338 per dollar
  • The British pound was little changed at $1.3741


  • The yield on 10-year Treasuries advanced four basis points to 1.61%
  • Germany’s 10-year yield advanced two basis points to -0.14%
  • Britain’s 10-year yield advanced two basis points to 1.13%


Opening Bell: China Woes Pressure U.S. Futures, Stocks; Dollar, Yields Rally

Related Articles

FactSet Research Systems Inc
Podcast : Financial Market Preview - Tuesday 30-Nov By FactSet Research Systems Inc - Nov 30, 2021

US futures are indicating a lower open as of 05:00 ET. European equity markets are lower following mixed Asian trade. Sentiment has deteriorated after Moderna's CEO predicted...

Acuity Knowledge Partners
Rising investor demand for ESG in their portfolios By Acuity Knowledge Partners - Nov 30, 2021

“Investments are subject to market risk” is a mandatory statement a fund house makes in an Investment Policy Statement (IPS) when offering investment opportunities to investors....

Opening Bell: China Woes Pressure U.S. Futures, Stocks; Dollar, Yields Rally

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Sign up with Email