Investing.com | Oct 19, 2021 12:18
Contracts on the Dow, S&P, NASDAQ and Russell 2000 as well as global equities were all trading higher on Tuesday ahead of the Wall Street open, after Monday's tech rally saw the NASDAQ jump 0.84%. The move came amid optimism on corporate earnings which offset lingering pessimism over heightened inflation.
Treasuries fluctuated and the dollar declined.
Europe's STOXX 600 Index found its footing after yesterday's selloff, driven by a rally in the European technology sector which took its cue from yesterday's gains during the New York session. However, telecom equipment manufacturer Ericsson (ST:ERICb) dropped about 3%, though it has since recovered some of those losses, after the Swedish telecom infrastructure giant reported chip supply constraints which overshadowed an earnings beat.
As well, Swedish telecom operator Tele2 (ST:TEL2b) lost almost 5% of value, presumably on profit-taking after quarterly earnings met expectations.
Earlier, the same tech industry recovery helped Asian traders look past pessimism over China's slowing economy. Stocks in the region rebounded from yesterday's declines. Hong Kong's Hang Seng jumped 1.5%, outperforming Asian peers. On the other side of the performance spectrum, Australia's ASX 200 slipped into the red, as the metal & mining, resource and materials sector—which the country's economy is heavily dependent on—fell.
Rising bond yields have pressured Australian shares as investors feared the Reserve Bank would begin removing accommodation. However, rates dropped as investors shored up government bonds after the central bank said it remained committed to supporting monetary conditions to bolster the economy.
US Treasury yields on the 10-year note, which have been volatile recently due to patchy economic data, pared a decline while the dollar traded lower.
The USD drop follows a blown-out H&S top, which meets with the neckline of a massive double-bottom. That's why we consider this to be a momentary dip. We see it as part of a return move before the greenback makes new highs.
Gold moved higher, benefiting from the weaker dollar.
We now need to wait and see whether bulls or bears will win the upcoming battle between the smaller H&S bottom on the Daily Chart or the much larger H&S continuation pattern along with the downtrend line since the August record peak.
Bitcoin gave up an advance towards its all-time high, despite added hype around cryptocurrencies due to the impending start of trading later today of the first Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (NYSE:BITO).
The digital token is developing a shooting star, which requires a close to be considered bearish. Also, the price broke free of its rising channel since the July bottom, suggesting a steeper climb toward the mid-April record.
Oil rebounded from a steep decline.
If prices return to session lows, they will complete an Evening Star.
A natural gas shortage is spurring demand for products such as fuel oil and diesel for power generation.
The price completed a small H&S top.
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.