Opening Bell: U.S. Futures Mixed, Europe Lower After Dovish Powell; Oil Slumps
Investing.com | Jul 15, 2021 08:28AM ET
- Fed's Powell said recovery not strong enough to remove accommodation
- China’s growth slows
- Oil extends selloff
- Powell will testify today for the second day to the Congressional Financial Services Committee.
- On Friday the Bank of Japan announces its interest rate decision.
- The STOXX 600 fell 0.5%
- Futures on the S&P 500 fell 0.3%
- Futures on the NASDAQ 100 rose 0.1%
- Futures on the Dow Jones Industrial Average fell 0.4%
- The MSCI Asia Pacific Index rose 0.2%
- The MSCI Emerging Markets Index rose 0.8%
- The Dollar Index was little changed
- The euro was little changed at $1.1829
- The Japanese yen rose 0.2% to 109.78 per dollar
- The offshore yuan was little changed at 6.4612 per dollar
- The British pound fell 0.3% to $1.3823
- The yield on 10-year Treasuries declined three basis points to 1.32%
- Germany’s 10-year yield declined one basis point to -0.33%
- Britain’s 10-year yield declined two basis points to 0.61%
- Brent crude fell 1.6% to $73.58 a barrel
- Spot gold rose 0.2% to $1,831.64 an ounce
Key Events/h2
US futures contracts on the Dow, S&P, NASDAQ and Russell 2000 have been trading unevenly ahead of the US session on Thursday and most are currently heading lower. Equities in Europe declined along with the price of oil, pressured by rising stockpiles, as traders weighed slowing expansion in China with yesterday's dovish rhetoric from Fed Chair Jerome Powell.
Yields returned to declines and gold is currently rising.
Global Financial Affairs/h2
In a show of force for tech stocks, which outperformed during coronavirus lockdowns, contracts on the NASDAQ 100—the index most associated with growth stocks—were the only ones in the green at time of writing, +0.13%. On the opposite end of the cyclical rotation, Russell futures—whose small cap domestic firms listed on the underlying index benefit from economic recovery—were 1.6% in the red, with futures on the Dow—whose listed blue-chip megacaps also represent the value sector—0.5% in negative territory.
European shares extended Wednesday’s drop, pressured by the oil majors as well as weakening commodity prices. However, stocks on the other angles to competes with the US as the world’s largest refinery. Chinese companies processed a record volume of crude in June. Meanwhile OPEC+ is nearing a deal.
Crude’s second day decline found support at the neckline of a small H&S top, whose bearish outlook is supported by both the MACD and the RSI. For clues to the demand side of the oil equation, there's one surprising metric traders should watch.
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