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U.S. Opening Bell: Futures, Global Markets Rally On Dip Buying; Volatility Remains

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewMay 17, 2022 12:28
uk.investing.com/analysis/opening-bell-futures-global-markets-rally-on-dip-buying-but-volatility-remains-200519011
U.S. Opening Bell: Futures, Global Markets Rally On Dip Buying; Volatility Remains
By Investing.com (Pinchas Cohen/Investing.com)   |  May 17, 2022 12:28
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  • China's coronavirus lockdown may be eased
  • Bitcoin recovers
  • Oil continues to move higher

Key Events

Dow Jones, S&P 500, NASDAQ 100, and Russell 2000 futures as well as European stocks advanced in trading ahead of the US open on Tuesday as dip buyers returned ahead of the release of US retail sales figures at 8.30 am EST (1230 GMT).

Markets remain volatile as traders are still pessimistic on the economy's health amid soaring prices and central bank monetary policy tightening.

The dollar also weakened further.

Global Financial Affairs

Today markets are up with futures on the tech-heavy NASDAQ 100 outperforming. Russell 2000 futures are in second place followed by the S&P 500 futures with the Dow Jones lagging. This is the exact opposite of yesterday's performance on Wall Street.

S&P 500 Futures Daily
S&P 500 Futures Daily

It seems that when inflation and interest rates concerns weigh on trader sentiment, the technology sector leads any rout followed by small caps, and when economic growth is in focus the same two indices lead gainers.

In Europe, the STOXX 600 Index jumped, extending an advance to the third consecutive day and to its fifth in six sessions. Travel and basic resources outperformed.

Asian markets bucked yesterday's Wall Street selloff with all major markets trading in positive territory. Hong Kong's Hang Seng advanced 3.27% as shares in listed property developers jumped after China reduced mortgage rates.

In addition, there is some hope that the recent coronavirus lockdown in China may be coming to an end as Shanghai has reported three consecutive days with no new cases outside quarantine zones.

US stocks retreated in Monday's final hour of trading after China's manufacturing data and consumer spending languished at the lowest levels since the virus was first discovered.

It is worth noting that New York City is reconsidering mask requirements amid a "high" COVID alert level. The US stock market retreated from initial gains on Monday as investors sold off tech heavyweights Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL).

Treasury yields on the 10-year note erased most of yesterday's losses. Bond investors are grappling with inflation worries and recession fears.

The dollar is falling for the third day, although the slide is offering opportunity to buy the greenback from a technical perspective.

Dollar Index Daily
Dollar Index Daily

The USD is bullishly performing a Return Move to a Falling Flag after the preceding six-day rally.

Gold rebounded for the second day in its long advance since the end of April.

Gold Weekly
Gold Weekly

Will the yellow metal resume higher along its Rising Channel or fall below August lows, completing a Double Top? Meanwhile, the price is forming a weekly bullish hammer, strengthening the case for a rebound.

Bitcoin rebounded and pared half of yesterday's losses, although we think the digital currency will continue lower.

Bitcoin Daily
Bitcoin Daily

The cryptocurrency is developing a Rising Flag, bearish after the preceding sharp move, extending the downside move from the H&S top and completing a Double Top which was twice the scale. If the giant pattern completes, it will see BTC wipe out most of its value.

Oil prices continued to move higher after a four-day rally during which contracts catapulted almost 15%. The European Union has been unable to cement a ban on importing Russian energy products.

Oil Daily
Oil Daily

The price found resistance at the top of a rising channel, raising downside risk toward the $100 mark.

Up Ahead

  • The UK releases CPI figures on Wednesday.
  • On Wednesday the Eurozone publishes CPI data.
  • The US announces building permit numbers for April on Wednesday.

Market Moves

Stocks

  • The MSCI Asia Pacific Index rose 0.28%
  • The German DAX jumped nearly 1.5% to 14,170.43
  • The UK FTSE 100 rose 0.96% to 7,535.55

Currencies

Bonds

  • Germany's 10-year yield advanced to 1.01%
  • Britain's 10-year yield rose to 1.82%

Commodities

U.S. Opening Bell: Futures, Global Markets Rally On Dip Buying; Volatility Remains
 

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U.S. Opening Bell: Futures, Global Markets Rally On Dip Buying; Volatility Remains

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