Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Opening Bell: Earnings, Regulations Weigh On Stocks; Commodities Slump

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewOct 27, 2021 12:08
uk.investing.com/analysis/opening-bell-earnings-inflation-regulations-weigh-on-stocks-commodities-slump-200500804
U.S. Opening Bell: Earnings, Regulations Weigh On Stocks; Commodities Slump
By Investing.com (Pinchas Cohen/Investing.com)   |  Oct 27, 2021 12:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • US futures lower after big tech earnings beats
  • China regulators pressure regional tech shares
  • Dollar firms

Key Events

On Wednesday, contracts on the four major US indices—the S&P, NASDAQ, Dow and Russell 2000—were down at time of writing along with European stocks which ended a three-day advance after mixed corporate results and weaker commodity prices pressured markets.

Treasury yields slipped and the US dollar climbed.

Global Financial Affairs

The pan-European STOXX 600 Index fell, along with miners, which tracked a drop in raw materials, including aluminum and iron ore, and oil.

STOXX 600 Daily
STOXX 600 Daily

The index retreated today from record levels. Yesterday’s high was 476.06, the benchmark's highest level since it hit 476.16 intraday on Aug.13. The closing price on Tuesday was 475.74, just a hair below the Aug. 13, 475.83 record close. The index appeared to find resistance at these levels, as can be seen via both the diminishing volume in its recent rally since the Oct. 6 low, as well as the falling momentum.

Deutsche Bank (DE:DBKGn) sold off this morning, losing more than 3%, after the Germany-based financial institution missed on earnings. Shares of Spain's Banco Santander (MC:SAN) dropped despite seeing higher profits in the third quarter, perhaps because investors saw a chance to take some profit. 

Shares of Dutch brewer and beverage maker Heineken (AS:HEIN) slumped after the company reported steeper than expected declines in Q3 beer sales.

HEIN Daily
HEIN Daily

Technically, the stock is struggling to complete a small H&S bottom, protected by the 200 DMA.

The stock of German sportswear manufacturer Puma (DE:PUMG), gapped up by almost 3%, pushing shares forward toward its fourth straight weekly gain, after the company lifted its sales forecast.

Earlier Wednesday, Asian equities sold off after Australia's inflation remained high, exacerbating fears that it will get out of hand and disrupt the much hoped for economic recovery. Australia’s ASX 200 barely rose, gaining only 0.07%. An early advance was offset by weakened mining stocks.

The steep domestic inflation figures coincided with a steep decline in retail giant Woolworths Group (ASX:WOW) sales. All things considered, the fact that the ASX 200 was able to record a gain at all may be considered impressive, under these circumstances. It was the benchmark’s 6th straight advance.

The Australian dollar slipped into the red after initially gaining on the theme of rising rates. The country’s 10-year bond yield also gave up most of an advance.

AUD/USD Daily
AUD/USD Daily

The AUD/USD appears to have found resistance at the 200 DMA. The Aussie has been unable to overcome this barrier since Oct. 20. For now, however, the price is finding support at the bottom of a rising channel.

Another headwind for Asian equities: fresh concerns about escalating tech-focused regulations out of Beijing after, "China's internet watchdog said it planned stricter registration rules for younger net users." That triggered the sharpest decline in seven weeks for Chinese tech shares.

The selloff coincided with spiking short-term yields, as traders presumably bet on rising interest rates. China’s Shanghai Composite dropped by nearly a full percent. Hong Kong’s Hang Seng plummeted by 1.75%.

Japan’s Nikkei dropped 0.15% amid worries about central bank responses to inflation. Still, traders managed to trim a much steeper decline, to the tune of 0.8%.

US 10-year Treasury yields were down for a fourth day, as investors routed funds out of stocks and into bonds.

UST 10Y Daily
UST 10Y Daily

The move is technically justifiable within its rising channel, supported by the 200 DMA.

The dollar climbed for the third day in a row.

Dollar Daily
Dollar Daily

The global reserve currency may be heading back toward the top of its rising channel, after finding support by the 93.50 level since Oct. 19.

Gold slipped for a second day.

Gold Weekly
Gold Weekly

The precious metal's current decline—if it lasts till this week’s close—will put a halt to its two-week rally. This may be a signal that the return move is over, and the weekly H&S continuation pattern will go into effect pushing the yellow metal lower.

Bitcoin fell back below $60,000, per our forecast earlier this week.

BTC/USD Daily
BTC/USD Daily

The cryptocurrency completed a small H&S top, after diminishing momentum provided a negative divergence.

Oil slipped.

Oil Daily
Oil Daily

WTI has been falling, now tracking momentum that's been dropping since September. More recently, the commodity has failed its rising trend.

Up Ahead

Market Moves

Stocks

Currencies

  • The British pound was little changed at $1.3754
  • The Dollar Index was little changed
  • The euro was little changed at $1.1604
  • The Japanese yen rose 0.4% to 113.71 per dollar
  • The offshore yuan was little changed at 6.3841 per dollar

Bonds

  • Britain’s 10-year yield declined three basis points to 1.08%
  • The yield on 10-year Treasuries was little changed at 1.62%
  • Germany’s 10-year yield declined one basis point to -0.13%

Commodities

  • WTI crude fell 1.5% to $83.35
  • Spot gold fell 0.3% to $1,787.19 an ounce
U.S. Opening Bell: Earnings, Regulations Weigh On Stocks; Commodities Slump
 

Related Articles

U.S. Opening Bell: Earnings, Regulations Weigh On Stocks; Commodities Slump

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
George Iyke Okpara
George Iyke Okpara Oct 27, 2021 14:17
Saved. See Saved Items.
This comment has already been saved in your Saved Items
great coverage 👍
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email