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

Opening Bell: COVID-19, Trade War Tensions Pressure Futures, Global Stocks

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewMay 12, 2020 06:34
ca.investing.com/analysis/opening-bell-covid19-trade-war-tensions-pressure-futures-global-stocks-200436507
Opening Bell: COVID-19, Trade War Tensions Pressure Futures, Global Stocks
By Investing.com (Pinchas Cohen/Investing.com)   |  May 12, 2020 06:34
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • Asia, U.S. futures, European shares all waver on pandemic-related fears
  • USD dips

Key Events

US futures for the S&P 500, Dow Jones, NASDAQ and Russell 2000 slipped on Tuesday and European equities struggled to hold a small advance after stocks in Asia dropped on heightening tensions related to the worst global pandemic in a century. Along with worries about a second wave of COVID-19 flare-ups as lockdowns ease worldwide, trade-related anxieties between China and the US, the world’s two largest economies, have re-ignited.

Yields fluctuated, the dollar gave up an advance and oil struggled.

Global Financial Affairs

Global markets and contracts on all of the four major US indices slid into the red this morning, after the Trump administration escalated its threats against China for the way Beijing has handled the coronavirus outbreak.

The most recent salvo: the US president wants to force the Federal Retirement Thrift Investment Board, which manages a $557 billion retirement fund for federal employees and members of the US military, to divest all Chinese assets or index funds that may include those assets. The move came at the same time as China opening applications to remove retaliatory tariffs from US imports.

All of which may, or may not, be related to a plunge in China’s factory prices, released this morning, which revealed the real economic impact of the virus on the Asian nation.

The Stoxx Europe 600 Index was lifted by Healthcare and Telecom shares after an earlier drop.

Asian shares all finished lower. Hong Kong’s Hang Seng took the brunt of the selloff, (-1.4%), while China’s Shanghai Composite outperformed again, (-0.1%), again, despite being in the crosshairs of all pandemic headwinds.

The yield on the US 10-year Treasury fluctuated as the dollar gave up a second-day rally.

DXY Daily
DXY Daily

The USD found resistance at the May highs, within a bullish range that's been developing since March, counterintuitively, after a fall.

Gold rose.

Gold Daily
Gold Daily

Trading of the precious metal is congesting into the corner of a triangular range since April 4, when the price completed a H&S continuation pattern. The direction of the pattern’s breakout will signal where the next leg is headed.

The much anticipated Bitcoin halving, which reduces the rate at which new tokens are created, has occurred—and the sky hasn't fallen.

BTC/USD Daily
BTC/USD Daily

The price of the cryptocurrency remains at ease. It's still at the intersection between the uptrend since the March low and the downtrend within the June high. It appears that technicals have now taken over, with no new trend yet clear. Whichever trend dominates will drive the next leg; we’re betting on the longer trend.

For the last three hours oil has been moving higher, gaining barely $0.75. That's not an impressive figure, but this apparently meaningless move indicates the beaten down commodity has increased by 3% which has more gravity.

Oil Daily
Oil Daily

The ascent comes after Saudi Arabia committed to further production cuts. Technically, a rise above $30 would signal a bottom.

Up Ahead

Market Moves

Stocks

  • Futures on the S&P 500 Index decreased 0.4%.
  • The Stoxx Europe 600 Index rose 0.1%.
  • The MSCI Asia Pacific Index fell 0.8%.

Currencies

  • The Dollar Index retreated 0.1%.
  • The euro increased 0.1% to $1.0818.
  • The British pound was little changed at $1.2339.
  • The Japanese yen strengthened 0.1% to 107.60 per dollar.

Bonds

  • The yield on 10-year Treasuries dipped less than one basis point to 0.71%.
  • Germany’s 10-year yield increased two basis points to -0.49%.
  • Britain’s 10-year yield was unchanged at 0.28%.

Commodities

  • West Texas Intermediate crude climbed 2.5% to $24.74 a barrel.
  • Gold strengthened 0.2% to $1,701.10 an ounce.
Opening Bell: COVID-19, Trade War Tensions Pressure Futures, Global Stocks
 

Related Articles

Ross Hendricks
The Pandemic Boom Goes Bust By Ross Hendricks - Jan 29, 2022

The Pandemic Boom Goes BustWelcome to the great fiscal hangover. Over the last 18 months, the U.S. economy enjoyed the greatest stimulus infusion of all time. More than $5 trillion...

FactSet Research Systems Inc
Podcast : Financial Market Preview - Friday 28-Jan By FactSet Research Systems Inc - Jan 28, 2022

US equity futures are indicating a flat to slightly lower open as of 05:00 ET. European equity markets broadly lower, following mixed but mostly higher levels in Asia. Fed rate...

Opening Bell: COVID-19, Trade War Tensions Pressure Futures, Global Stocks

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.
Comments (2)
Ed Crain
Ed Crain May 13, 2020 3:50
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If analysts were any good, they'd be multimillionaires. Not a single one posting on this site is.
Farhad Vali
Farhad Vali May 12, 2020 19:10
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Non of these analysis and charts matter. Trade war is meaningful when there is an economy and cosumer purchase power is there. I think analysts should leave the charts and walk outside with masks and gloves for a day. Then you will know the future of thess charts.
 
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