Investing.com | Apr 24, 2019 06:30AM ET
Europe's STOXX 600 and futures on the S&P 500, Dow and NASDAQ 100 arduously crawled above neutral levels this morning after Asian stocks failed to build on yesterday's record-breaking U.S. session, amid a lack of significant catalysts.
Japan’s Nikkei (-0.35%) and South Korea’s KOSPI (-0.88%) slid alongside Hong Kong’s Hang Seng (-0.53%), while China’s Shanghai Composite (+0.09%) managed to climb into green territory. Australian equities (+0.99%) outperformed their regional peers after disappointing figures on consumer price growth stoked bets on future curbs on interest rates, pulling down the Aussie and thereby bolstering the competitiveness of domestic assets.
h2 Global Financial Affairs/h2On Tuesday, some solid earnings reports pushed the S&P 500 and the NASDAQ Composite to fresh records.
The tech-heavy index jumped 1.32% to post a fresh record close as well as an intraday high—only 0.05% below its record high.
The S&P 500 rose 0.88%, building on an earnings-beat rally led by the biggest technology and media firms—including Twitter (NYSE:TWTR)—as well as by consumer names such as Coca-Cola (NYSE:KO) and Hasbro (NASDAQ:HAS). Technically, the price of the benchmark index hit a fresh record close but has yet to register a new all-time high.
Nine out of the 11 SPX sectors closed in the green, with only defensive stocks in Consumer Staples (-0.32%) and Energy (-0.16%) declining. The latter suffered from volatility in the oil market, which is generating an meaningful impact on prices, as they expect OPEC+ oil producers to halt their output cuts and replenish any possible supply vacuum.
The Dow Jones Industrial Average added 0.55%, closing 0.63% below its record close.
Finally, the Russell 2000 beat its peers, surging 1.57%. Technically, however, the small-cap benchmark posted the weakest picture among U.S. majors, as it closed below the April congestion, which stands below the March range and almost 10% lower than its record price.
Meanwhile, yields on 10-year Treasurys fell below an uptrend line since March 28, confirming last Wednesday’s shooting star, after a completion of a December-March symmetrical triangle. The downside uptrend line breakout points to an end of the return move to the bearish pattern.
The dollar climbed for a second day, after penetrating the upper boundary of a symmetrical triangle yesterday, suggesting further rallies.
In the U.K., the pound wavered after extending a decline to a seventh consecutive session, as Prime Minister Theresa May faced a renewed challenge to her leadership from Conservative MPs. Technically, the British currency still holds the path to a H&S bottom.
Oil dropped after three days of gains, pressured by a report of rising stockpiles from the International Energy Agency. Tuesday’s shooting star gave traders a heads up for a supply onslaught, at the same levels of most of last year’s price congestion. Technically, a correction is due as a return move.
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