U.S. Opening Bell: Futures, Stocks Slide On Energy And Inflation Worries; Oil Up
Investing.com | Oct 11, 2021 11:12
- Market sentiment contradictions
- Europe STOXX 600 Index developing H&S top
- Oil trades over $80 h2 Key Financials /h2
- US Jolts Job Openings are announced on Tuesday.
- FOMC member RIchard Clarida is speaking on Tuesday.
- On Wednesday, the US CPI figures are published.
- The FTSE 100 increased 0.3%
- The STOXX 600 fell 0.5%
- Futures on the S&P 500 fell 0.6%
- Futures on the NASDAQ 100 fell 0.7%
- Futures on the Dow Jones Industrial Average fell 0.5%
- The British pound rose 0.5%
- The Dollar Index rose 0.2%
- The euro was little changed
- The Japanese yen dropped 0.6%
- Britain’s 10-year yield advanced one basis point to 1.22%
- The yield on 10-year Treasuries advanced two basis points 1.612%
- Germany’s 10-year rose two basis points to at -0.1195%
- Brent crude surged 2.1%
- WTI crude jumped 2.6%
- Gold futures fell 0.2%
US stock futures on the Dow, S&P, NASDAQ and Russell 2000 as well as European equities were trading lower on Monday ahead of the US open, as persistent inflation worries were exacerbated by concerns that the global energy crunch will disrupt the economic recovery and that upcoming earnings results may show signs of a slowdown.
Gold continued to slide.
Global Financial Affairs/h2
In Europe, the STOXX 600 declined with travel and leisure, while commodity related stocks, including energy and mining, dug in their heels, mitigating losses.
The pan-European benchmark is trading along a H&S top.
The apparent contradiction of the energy sector rising, while travel and leisure stocks are being sold off is unusual. Typically these sectors correlate, as energy is a vital component of travel. Another potential anomaly is the drop in the bank sector as the market narrative is blaming the current selloff on the inflation outlook.
Perhaps banks are climbing because along with higher inflation, there is an expectation of higher interest rates, the bread-and-butter of banks.
Sure enough, yields on the 10-year Treasury note are increasing, signalling investors' expectations of rising rates.
Yields are repeating the previous jump out of an ascending triangle-bottom, after completing a falling flag, bullish after the preceding surge.
Another incongruity in the market is rising yields while stocks fall. Generally, the two are positively correlated, as investors rotate between risk and havens.
So where are investors putting their cash after selling stocks? In shorter-dated bonds. The 1-month Treasury yield was flat, while the 3-month Treasury yield fell, as investors increased demand.
The dollar rose along with the 10-year yield, even after Goldman Sachs reduced its outlook for US growth for this year and next, due to a slower than anticipated recovery in consumer spending.
The greenback has been developing a bullish pennant, whose completion will signal a resumption of the rally after completing a massive double-bottom.
Gold was lower for the third straight day. The price has been depressed for some time amid the strong dollar rally. However, technically, it can still turn around.
The yellow metal is developing the right shoulder of a small H&S bottom, itself making up the left shoulder of a larger H&S bottom.
Bitcoin jumped to its highest level since May.
Oil traded over $80 for the first time since Oct. 31, 2014, amid a global energy crisis, due to stagnant production during the coronavirus pandemic.
Up Ahead/h2
Market Moves/h2 Stocks/h3
h3 Currencies/h3
Bonds/h3
Commodities/h3
Stocks/h3
h3 Currencies/h3
Bonds/h3
Commodities/h3
Commodities/h3
Get The App
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.