Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

U.S. Opening Bell: Europe Shares Follow U.S. Futures Higher, Yields Up; Oil Slides

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewMar 14, 2022 07:38
ca.investing.com/analysis/opening-bell-europe-shares-follow-us-futures-higher-yields-gain-oil-slides-200503215
U.S. Opening Bell: Europe Shares Follow U.S. Futures Higher, Yields Up; Oil Slides
By Investing.com (Pinchas Cohen/Investing.com)   |  Mar 14, 2022 07:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • Peace talks boost market optimism
  • China, Hong Kong benchmarks slip
  • Dollar dips

Key Events

On Monday, US futures on the Dow Jones, S&P 500, NASDAQ, and Russell 2000 advanced with European shares ahead of peace talks between Russia and Ukraine later today. Still, markets are expected to remain subdued ahead of Wednesday's, closely watched Federal Reserve Policy Meeting, even though Fed Chair Jerome Powell has already signaled that he plans to hike rates by 0.25%.

The global bond selloff persisted, with US 5-year Treasury yields surpassing 2% for the first time since mid-2019.

Global Financial Affairs

All four US futures were trading in positive territory which some market watchers are characterizing as a sign of a rally, following last week's steep selloff. However, we think investors are still worried, despite today's uptick.

Insurers and banks were the drivers of the STOXX 600's advance on Monday.

Earlier, in Asia, stocks were mixed. Hong Kong's Hang Seng plunged about 5% after neighboring China's 'Silicon Valley' began a lockdown amid the worst spike in COVID-19 cases there in two years.

With a 2.6% drop, China's Shanghai Composite was the second-worst performer in the region, as five US-listed Chinese companies, worth $1.1 trillion, face the threat of delisting. The US Securities and Exchange Commission has shortlisted BeiGene (NASDAQ:BGNE), Yum China (NYSE:YUMC), Zai Lab (NASDAQ:ZLAB), ACM Research (NASDAQ:ACMR), and HUTCHMED (NASDAQ:HCM), saying they must meet US accounting standards.

This news has also dented marquee Sino stocks like Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), and Tencent (OTC:TCEHY).

Additionally, China continued its tech crackdown, as the country's top internet official signaled more stringent regulations for streaming entertainment services aimed at children, social networks, and online messaging services.

Australia's ASX 200 rose 1.21%. Among the equity winners, there were financials and healthcare stocks, as investors seemed willing to increase risk on hopes of a peace deal in the Russia-Ukraine conflict.

Japan's Nikkei 225 gained 0.58% after falling oil prices eased the pressure on the economy which is heavily reliant on oil imports. Travel shares also advanced due to a drop in the number of COVID-19 cases as well as increased optimism that the government would support the sector.

Financial stocks also climbed during Japanese trade amid rising yields for long-dated bonds, boosting the profit outlook. Finally, carmakers benefited from a weaker yen—which fell to its lowest since Dec. 20, 2016—as it will make Japanese cars more competitively priced internationally.

Technically, we could be looking at a significant move for the currency.

Japanese Yen Monthly
Japanese Yen Monthly

After the USD/JPY completed a monthly triangle between June 2015 and March 2021, the pair has peaked above the trendline since April 1990, potentially ending a massive bottom.

The 10-year Treasury yield continued its advance to the highest level since July 2019. European yields also moved higher.

10-year Treasuries Daily
10-year Treasuries Daily

The H&S officially failed against the might of the massive symmetrical triangle. That doesn't mean, however, that it will not turn into a double-headed H&S top or double top. Still, we maintain our faith in the much more robust bullish (for yields) triangle, which is bearish for bonds.

The dollar gave up earlier gains and pared some of its rallies from Thursday and Friday.

Dollar Index Daily
Dollar Index Daily

Technically, the greenback could be developing a falling channel, bullish after the sharp rise amid the breakout to an H&S bottom.

Gold may decline amid profit-taking and dollar strength after fulfilling the huge triangle's implied target. Any progress in negotiations between Ukraine and Russia will also likely weigh on the haven asset.

Bitcoin recovered erasing yesterday's losses.

Bitcoin Daily
Bitcoin Daily

From a technical perspective, the cryptocurrency may be forming a symmetrical triangle, bearish after the preceding H&S top.

Oil resumed falling for the third out of four days, as investors remain on tenterhooks in the hope that the Russia-Ukraine talks will head in the right direction.

Oil 4-Hourly
Oil 4-Hourly

The price may be on the verge of completing an H&S top after back-to-back raising flags, aiming at the $80 levels.

Up Ahead

Market Moves

Stocks

  • The STOXX 600 rose 0.8%
  • Futures on the S&P 500 rose 0.8%
  • Futures on the NASDAQ 100 rose 0.5%
  • Futures on the Dow Jones Industrial Average rose 0.9%
  • The MSCI Asia Pacific Index fell 1.4%
  • The MSCI Emerging Markets Index fell 2.3%

Currencies

  • The Dollar Index retreated 0.27% to 98.87
  • The euro rose 0.3% to $1.0942
  • The Japanese yen rose 0.6% to 118.01 per dollar
  • The offshore yuan up 0.4% to 6.3808 per dollar
  • The British pound was little changed at $1.3047

Bonds

  • The yield on 10-year Treasuries advanced six basis points to 2.05%
  • Germany's 10-year yield rose to 0.334%
  • Britain's 10-year yield increased to 1.589%

Commodities

  • WTI crude decline 3.96% to $104.92
  • Brent crude fell 4% to $108.03 a barrel
  • Spot gold fell 1.3% to $1,962.58 an ounce
U.S. Opening Bell: Europe Shares Follow U.S. Futures Higher, Yields Up; Oil Slides
 

Related Articles

U.S. Opening Bell: Europe Shares Follow U.S. Futures Higher, Yields Up; Oil Slides

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
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email