Opening bell: U.S. futures and global equities rise on China tariff cut talks

  • Biden said he’s considering overhauling Trump’s China tariffs
  • Yields rebound
  • Bitcoin continues to struggle

Key events

Futures on the , , , and the surged and European stocks also rose ahead of Monday’s New York open. Expectations that U.S. President Joseph Biden could scrap some tariffs on Chinese goods put in place by former President Donald Trump have boosted optimism among traders. However, China recorded 99 new COVID-19 infections on Sunday, up from 61 a day earlier, a record number of daily cases for the current outbreak.

The dollar fell as investors returned to risk assets following comments from the ECB President that bulls in Europe are likely.

Global Financial Affairs

All four US contracts were positive, with the Russell 2000 outperforming. Of interest, the Russell 2000 Index fell the least amid the recent market selloff.

Earlier in the day, the US President and Japanese Prime Minister Fumio Kishida held a press conference in Tokyo where Biden responded to a question about Chinese tariffs saying, “I’m thinking about it. We didn’t impose any of these tariffs. They were imposed by the last administration. , and they are under study.”

In Europe, the index rose, led by the industrial and financial sectors. However, we anticipate that this rally will not last.

The pan-European gauge develops an ascending, bearish flag – after a bearish breakout – after the previous decline of nearly 7% in just three days. The follow-up pattern would test the March 7th low. If the price goes down further, it will cement the downtrend, with the third set of lower peaks and lows, or two second sets updating the pair that was part of the uptrend.

The UK rose with mining and oil majors boosted by rising global commodity prices. Shares of British multinational Kingfisher (LON:) jumped after being positive. Nonetheless, the stock faces an uphill battle.

weekly kingfisher

The price fell below major supports including the 200 WMA and the lows between August 2020 and February 2021.

Biden’s remarks on tariffs lifted Asian stocks from session lows, although shares in China and Hong Kong closed flat or in the red. The underperformer, down 1.2%, as big tech companies sold ahead of earnings, under pressure from ongoing coronavirus lockdowns.

In Japan, the outperformed, up nearly 1%, as the US president announced a new trade deal with 12 Indo-Pacific countries during his visit to Japan.

Will the prospect of a trade tariff cut on China end worries following weak retail sector earnings last week from (NYSE:) and (NYSE:), whose shares all two suffered their worst sales since 1987 on disappointing profits?

The saw its biggest daily decline in nearly two years on the same day the giant retailers sold out. Last week, the S&P 500 recorded its seventh week of declines, the longest losing streak for the broad benchmark in two years. The also posted seven consecutive weeks of losses, its most prolonged decline since 2002.

Last week’s missed results from Target and Walmart mean ahead of this week’s additional results from industry stalwarts. Retail performance is considered a leading indicator of the overall market and economy.

Yields on Treasuries on the note rebounded from Friday’s decline as traders increased risk on the prospect of improved trade relations with China.

10-year Treasury bills Daily

The rebound follows two consecutive weeks of declines, for the first time since November. Yields could be in a move back towards the neckline of a small H&S high.

Investors also weakened as investors turned away from safe havens and into risky assets. The greenback fell to its lowest level since April 26.

Dollar Hourly Index

The price found support at the May 4th lows, although the risk is on the short-term downside after a move back confirmed resistance from an H&S high.

Another headwind for the dollar is the likely end of negative eurozone interest rates according to ECB President Christine Lagarde. As a result, the jumped to a near-monthly high.

For the first time since mid-April, rose for the fourth straight day to a two-and-a-half-week high. Investors should note that the price increases occurred despite the mood to take risks. This anomaly could be a combination of the anticipation of the next Fed and dollar weakness, but it could also have happened for technical reasons.

Daily Gold

The price extended the bounce from the bottom of the Rising Channel.

was volatile as the digital currency continued to struggle against technical resistance. The asset class has come under increasing pressure as confidence in cryptocurrencies rises.

Daily Bitcoin

BTC tested a pennant top, bearish after the initial plunge. The breakout down should trigger a chain reaction to repeat the last move. If this happens, it will complete a massive double bottom, possibly signaling the concept of cryptocurrency.

fell, ending a two-day lead, but then recovered.

Daily Crude Oil

WTI price is at the possible neckline of a small H&S bottom, within a larger triangle.

Up to the front

  • On Tuesday, the UK figures are released.
  • The United States is released on Tuesday.
  • The President of the ECB is due to speak on Tuesday.

Market movements

Shares

  • The MSCI Asia-Pacific index rose 1.5%
  • The MSCI Emerging Markets Index rose 2%

Currencies

  • The fell 0.3% to 127.43 to the dollar
  • The fell 0.5% to 6.6583 to the dollar
  • The rise of 0.7% to $1.2579

Obligations

  • Germany’s yield rose to 0.977%
  • UK yield rose to 1.92%

Merchandise

  • rose 1% to $111.18 a barrel
  • rose 0.8% to $1,862.54 per ounce

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