Opening Bell: U.S. Futures, Stocks Pause; Treasuries, Dollar Slide

Key Events/h2

Falling yields dragged the dollar lower ahead of tomorrow's US inflation report, a possible leading indicator on the path of interest rates. Futures on the Dow, S&P, NASDAQ and Russell 2000 wavered in pre-US open trading on Wednesday as markets tread water ahead of the key economic indicator.

Oil demand improves, pushing prices nearer to 3-year highs.

Global Financial Affairs/h2

US futures and European stocks, including the STOXX 600 were in a holding pattern, with traders fingers hovering above order buttons.

Yields on the 10-year Treasury fell sharply toward the 1.5% mark.

A report showing rising inflation may be the last straw before rates complete a bearish pattern—a Descending Triangle, whose implied implication is a drop of 30 basis points to retest 1.20%.

The dollar fell on pessimism, as traders watched falling yields scream rising inflation, which would weaken the American currency’s buying power. Although the Fed is Analysts see the $30,000 level as a red line, which if broken can open the door for the cryptocurrency to reach $20,000. We set the breaking point at $29,000.

It's likely that BTC may break Tuesday’s hammer’s support, considering the price completed a bearish pennant. However, if it breaks the $29,000 level, there may be no floor for the leading crypto.

API reported a 2.11 million barrel drop in US inventory, demonstrating improving demand, pushing the price above $70.50, for the first time since mid-October 2018.

Oil completed an ascending triangle, demonstrating how demand is absorbing all available supply and upping bids to extend the underlying uptrend.

Up Ahead/h2

• Today the Bank of Canada announces its interest rate decision.
• The European Central Bank's interest rate decision on Thursday and hosts a press conference with President Christine Lagarde.
• Talks on the Iran nuclear deal reconvene in Vienna on Thursday.

Market Moves/h2

Stocks/h3

• The STOXX 600 was little changed
• Futures on the S&P 500 were little changed
• Futures on the NASDAQ 100 were little changed
• Futures on the Dow Jones Industrial Average were little changed
• The MSCI Asia Pacific Index fell 0.4%
• The MSCI Emerging Markets Index fell 0.3%

Currencies/h3

• The Dollar Index fell 0.1%
• The euro was little changed at $1.2184
• The Japanese yen was little changed at $109.42 per dollar
• The offshore yuan rose 0.1% to 6.3915 per dollar
• The British pound rose 0.2% to $1.4183

Bonds

• The yield on 10-year Treasuries declined three basis points to 1.51%
• Germany’s 10-year yield declined one basis point to -0.24%
• Britain’s 10-year yield declined one basis point to 0.76%

Commodities/h3

• Brent crude rose 0.6% to $73 a barrel
• Spot gold was little changed