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

Opening Bell: Futures, Global Markets Rally On Dip Buying But Volatility Remains

By (Pinchas Cohen/ OverviewMay 17, 2022 07:28
Opening Bell: Futures, Global Markets Rally On Dip Buying But Volatility Remains
By (Pinchas Cohen/   |  May 17, 2022 07:28
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • China's coronavirus lockdown may be eased
  • Bitcoin recovers
  • Oil continues to move higher

Key Events

Dow Jones, S&P 500, NASDAQ 100, and Russell 2000 futures as well as European stocks advanced in trading ahead of the US open on Tuesday as dip buyers returned ahead of the release of US retail sales figures at 8.30 am EST (1230 GMT).

Markets remain volatile as traders are still pessimistic on the economy's health amid soaring prices and central bank monetary policy tightening.

The dollar also weakened further.

Global Financial Affairs

Today markets are up with futures on the tech-heavy NASDAQ 100 outperforming. Russell 2000 futures are in second place followed by the S&P 500 futures with the Dow Jones lagging. This is the exact opposite of yesterday's performance on Wall Street.

S&P 500 Futures Daily
S&P 500 Futures Daily

It seems that when inflation and interest rates concerns weigh on trader sentiment, the technology sector leads any rout followed by small caps, and when economic growth is in focus the same two indices lead gainers.

In Europe, the STOXX 600 Index jumped, extending an advance to the third consecutive day and to its fifth in six sessions. Travel and basic resources outperformed.

Asian markets bucked yesterday's Wall Street selloff with all major markets trading in positive territory. Hong Kong's Hang Seng advanced 3.27% as shares in listed property developers jumped after China reduced mortgage rates.

In addition, there is some hope that the recent coronavirus lockdown in China may be coming to an end as Shanghai has reported three consecutive days with no new cases outside quarantine zones.

US stocks retreated in Monday's final hour of trading after China's manufacturing data and consumer spending languished at the lowest levels since the virus was first discovered.

It is worth noting that New York City is reconsidering mask requirements amid a "high" COVID alert level. The US stock market retreated from initial gains on Monday as investors sold off tech heavyweights Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL).

Treasury yields on the 10-year note erased most of yesterday's losses. Bond investors are grappling with inflation worries and recession fears.

The dollar is falling for the third day, although the slide is offering opportunity to buy the greenback from a technical perspective.

Dollar Index Daily
Dollar Index Daily

The USD is bullishly performing a Return Move to a Falling Flag after the preceding six-day rally.

Gold rebounded for the second day in its long advance since the end of April.

Gold Weekly
Gold Weekly

Will the yellow metal resume higher along its Rising Channel or fall below August lows, completing a Double Top? Meanwhile, the price is forming a weekly bullish hammer, strengthening the case for a rebound.

Bitcoin rebounded and pared half of yesterday's losses, although we think the digital currency will continue lower.

Bitcoin Daily
Bitcoin Daily

The cryptocurrency is developing a Rising Flag, bearish after the preceding sharp move, extending the downside move from the H&S top and completing a Double Top which was twice the scale. If the giant pattern completes, it will see BTC wipe out most of its value.

Oil prices continued to move higher after a four-day rally during which contracts catapulted almost 15%. The European Union has been unable to cement a ban on importing Russian energy products.

Oil Daily
Oil Daily

The price found resistance at the top of a rising channel, raising downside risk toward the $100 mark.

Up Ahead

  • The UK releases CPI figures on Wednesday.
  • On Wednesday the Eurozone publishes CPI data.
  • The US announces building permit numbers for April on Wednesday.

Market Moves


  • The MSCI Asia Pacific Index rose 0.28%
  • The German DAX jumped nearly 1.5% to 14,170.43
  • The UK FTSE 100 rose 0.96% to 7,535.55



  • Germany's 10-year yield advanced to 1.01%
  • Britain's 10-year yield rose to 1.82%


Opening Bell: Futures, Global Markets Rally On Dip Buying But Volatility Remains

Is Apple Undervalued?

Based on 15 different premium valuation models, we calculate whether Apple stock is undervalued or overvalued every day. If you are considering Apple for your portfolio, you need to check this out:

See Fair Value Now
Unlock Apple's unbiased fair value with InvestingPro+

Related Articles

Opening Bell: Futures, Global Markets Rally On Dip Buying But Volatility Remains

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
Our Apps
© 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
Sign up with Email