Investing.com | Sep 25, 2019 12:34
A report that China is preparing to purchase more U.S. pork did little to spare Futures on the S&P 500, Dow and NASDAQ 100 from joining a global slide this morning, following news that the U.S. Congress has opened a formal impeachment inquiry into the U.S. president.
Though the probe—which sees Donald Trump accused of seeking foreign interference to corner a political rival—may stumble upon a vote in the Republican-majority Senate, it was enough to spur risk-off trades and offset any trade tailwind.
Europe’s STOXX 600 was dragged down by energy and technology shares—the former tracking falling oil prices.
From a technical standpoint, the pan-European benchmark cleared the uptrend line since Aug. 15, with even its opening price standing below it. Both the MACD and RSI triggered sell signals.
Earlier, Asian equities flashed red across the board, falling the most in three weeks on the Trump impeachment announcement. Political instability in the world’s largest economy is never a good thing for markets, but the risk increases exponentially when it is paired with a prolonged and volatile trade spat with the world’s second largest economy, threatening a global recession.
Meanwhile, the yield on 10-year Treasurys rebounded slightly after edging lower for the eighth straight day on renewed risk off, failing to return to positive levels. Technically, yields slipped below the 50 DMA, after falling out of the monthly uptrend as they synchronized with the long-term downtrend line since November 2018.
The Dollar Index gained even against a stronger yen. For its part, Japan’s currency strengthened versus the euro and pound, as five-year domestic bond yields fell to a record low, following comments from the country’s central bank Governor Haruhiko Kuroda that added to speculation of an interest rate cut in October.
The pound reversed almost all of Tuesday’s gains, which were favored by the British Supreme Court's ruling that Prime Minister Boris Johnson breached the law by suspending Parliament.
West Texas Intermediate oil futures extended losses after API industry data indicated U.S. crude stockpiles grew last week. Larger inventories added to reports Saudi Arabia expects to fully restore its oil facilities by next week. Technically, WTI slipped below the 100 DMA toward the 50 DMA, guarding the uptrend line since Aug. 7.
Gold fluctuated after a four-day upside run.
Bitcoin plunged by $1,000 yesterday, within half an hour of margin calls at Bitmex. Today, the digital currency extended a decline to a third straight day, but stabilized right on the 200 DMA, which proved a support on Tuesday.
Technically, yesterday’s tumble completed a—mostly—descending triangle, whose downside breakout suggests that sellers are willing to lower offer prices to find willing buyers.
Written By: Investing.com
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.
More markets insights, more alerts, more ways to customize assets watchlists only on the App
More content, faster quotes and charts, and a smoother experience is available only on the App.