Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Opening Bell: Global Stocks Pop On China Export Beat, Firmer Yuan; WTI Leaps

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewAug 08, 2019 12:29
uk.investing.com/analysis/opening-bell-global-stocks-pop-on-china-export-beat-firmer-yuan-wti-leaps-200431787
Opening Bell: Global Stocks Pop On China Export Beat, Firmer Yuan; WTI Leaps
By Investing.com (Pinchas Cohen/Investing.com)   |  Aug 08, 2019 12:29
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

  • U.S. futures, global stocks climb after China sets stronger fixing for the yuan, posts upbeat exports
  • Oil jumps on possible price intervention by producers alliance, but downward pressure remains difficult to defy
  • Bitcoin retests top of falling channel
  • Key Events

    Futures on the S&P 500, Dow and NASDAQ 100 tracked global stocks higher this morning after China set the yuan at a stronger fixing, easing fears of trade war escalation.

    All four major U.S. contracts rose for the third day after U.S. stocks posted a late miraculous recovery on Wednesday after a tumultuous session.

    STOXX 600 Daily Chart
    STOXX 600 Daily Chart

    Europe's STOXX 600 climbed for the second day with technology and healthcare shares. The index's price is back above the 200 DMA after closing below it— on Monday and Tuesday—for the first time since Sep. 28, 2018, when it proceeded to plunge 13% in the three months to Dec. 27. Currently, the price is struggling with Tuesday’s and Wednesday’s highs, after those days' lows retested the June trough. If the price falls lower than 366.00, it will complete a double top.

    In the earlier Asian session, equities enjoyed widespread gains after Beijing daily currency fix was firmer than anticipated. Still, the renminbi remains weaker than 7.000 per dollar—for the first time since the financial crisis—for the fourth session, perhaps due to technical drivers. After the U.S. administration named China a currency manipulator, the Asian country blamed the yuan's moves on U.S. policies and trade rhetoric, which it said unsettled markets and spurred a selloff that led to pronounced depreciation.

    Global Financial Affairs

    Also helping equity prices higher, starting from the forceful reversal in the U.S. session: data showing Chinese exports grew the most since March, expanding 3.3% last month on a year-on-year basis, smashing expectations for a 2% contraction. Imports, however, slid 5.6%, boosting worries over falling demand—but averted the steeper 8.3% plunge that had been forecast, thereby enabling investors to preserve the rally.

    China’s Shanghai Composite rebounded 0.93% from the lowest level since February, outperforming its regional peers but remaining well below a dual resistance of a breakaway gap and the 200 DMA.

    WTI Daily Chart
    WTI Daily Chart

    WTI leaped forward after reports Saudi Arabia officials were summoning other oil producers to discuss a market intervention and stabilize falling prices.

    It’s noteworthy that any U.S.-China trade progress that recently propped equities up failed to drive oil higher, despite the fact trade jitters were what drove prices lower to begin with.

    A OPEC-Russia intervention may also fall short of rescuing oil prices, which have fallen into bear-market territory and completed a H&S continuation pattern—both confirming the downtrend line since the beginning of the year and threatening a massive descending channel during the same timeframe. Should that materialize, it will prompt the completion of a H&S continuation pattern since July 2016—within the long-term trend—whose implied target will retest the Feb. 2016 lows of $26.

    BTC Daily Chart
    BTC Daily Chart

    Bitcoin is retesting the top of a falling channel for the third day.

    Up Ahead

  • Fresh figures out late on Thursday are expected to show Japan GDP slipped to 0.1% from 0.6% quarter-on-quarter and dropped to 0.4% from 2.2% year-on-year.
  • All eyes will be on China CPI on Friday, with headline inflation expected to remain flat at 2.7% and PPI seen to contract to -0.1% from 0.00%.
  • Market Moves

    Stocks

    • The U.K.’s FTSE 100 gained 0.6%, the first advance in more than a week.
    • Germany’s DAX climbed 1.4%, the biggest rise in more than a week.
    • The MSCI Asia Pacific Index edged 0.3% higher, the largest rise in more than a week.

    Currencies

    • The Dollar Index fell 0.1%.
    • The euro gained 0.1% to $1.1215, the strongest in two weeks.
    • The British pound ticked 0.3% higher to $1.2177.
    • The Japanese yen climbed 0.1% to 106.14 per dollar.
    • The onshore yuan strengthened 0.2% to 7.044 per dollar.

    Bonds

    • The yield on 10-year Treasurys dropped less than one basis point to 1.73%.
    • Britain’s 10-year yield gained one basis point to 0.525%, the biggest advance in more than a week.
    • Germany’s 10-year yield climbed two basis points to -0.56%, the first advance in two weeks.

    Commodities

    • Gold gave up 0.2% to $1,498.35 an ounce.
    • West Texas Intermediate crude gained 2.9% to $52.56 a barrel.
    • Iron ore increased 2.1% to $90.92 per metric ton, the first advance in more than a week.
    • LME nickel surged 5.8% to $15,670 per metric ton to the highest in 14 months.
    Opening Bell: Global Stocks Pop On China Export Beat, Firmer Yuan; WTI Leaps
     

    Related Articles

    Opening Bell: Global Stocks Pop On China Export Beat, Firmer Yuan; WTI Leaps

    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.
     
    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