Opening Bell: U.S. Futures, Europe Stocks Subdued; Bitcoin, Oil Slide

  • Markets await inflation data for clues ahead of Fed response
  • US Dollar, Treasuries rally
  • Gold falters

Key Events

Despite the expectation that the Biden Administration’s spending plan will provoke a steep hike in inflation, futures on the , and were only moderately higher in trading on Tuesday, while futures were marginally lower. European stocks were also trading in the green, slightly below record highs.

Bitcoin slid to a four-and-a-half month low.

Global Financial Affairs

The Index climbed slightly with havens like utilities. Automakers dropped 0.8% after a six-day rally, which had driven the pan-European benchmark to a record high. German data revealed that Europe’s largest economy’s fell short of expectations, providing further evidence of supply bottlenecks and semiconductor shortages causing a slower than expected recovery in Europe’s steam engine economy.

Swiss drug maker Lonza (SIX:) gained over 5%, taking the stock to an all-time high, after Goldman Sachs upgraded the stock to “buy,” while British American Tobacco (LON:) rose as much as 2.5%, before paring the gain to 1.6%, after raising its annual revenue growth forecast.

Traders in Asia experienced a roller coaster as early gains reversed. China’s (-0.5%) underperformed, while Australia’s (+0.1%) provided the best results.

Focus was on yields, with the rate falling back below 1.6%, though it pared losses and settled at 1.57% as of the time of writing. All eyes are on the data which potentially may influence the Fed’s decision on tapering its stimulus.

10-year Treasuries Daily

Yields may have provided a downside breakout to a symmetrical triangle. After their inability to traverse the 50 DMA, rates are struggling to remain abreast of the 100 DMA, before they fall back toward their uptrend line—at 1.25% where the 200 DMA guards—or even lower to 1.00%.

Taking its cue from Treasuries, the advanced.

Dollar Index Daily

The greenback found support at the bottom of a rounding bottom, whose completion would indicate a return to the March highs, which were cut off with a bearish wedge. However, we have been arguing that the price decline from the March 2020 peak was in the shape of a bullish wedge. If we were right, the price should return to a medium-term uptrend. If the price falls below 89.00 we turn wholly bearish.

wiped out yesterday’s gains on dollar strength.

Gold Daily

Gold remains within a rising channel, after confirming support of the 200 DMA, which previously realigned with the top of a massive falling channel since the 2020 record top.

is falling for the fourth out of five days after former President Donald Trump—who thinks running for a House seat in 2022 is a “very interesting” idea—warned that Bitcoin is a “scam against the dollar.”

Bitcoin is still suffering from persistent tightening regulations in China and fell significantly after Tesla’s (NASDAQ:) about-face in May on accepting the digital coin as payment for its cars.

Bitcoin Daily

Bitcoin Daily

Bitcoin extended the downside breakout of a bearish pennant, suggesting the crypto will retest the $30,000 level, challenging our recent bullish call.

extended a decline, losing some momentum after hitting $70 a barrel in New York for the first time in over two years.

Oil Daily

We consider the second-day decline is part of a return-move, before prices take off, having completed a bullish triangle.

Up Ahead

  • The Bank of Canada announces its interest rate on Wednesday.
  • Iran nuclear deal talks reconvene in Vienna on Thursday.
  • Group of Seven (G7) leaders’ summit begins in Cornwall, England on Friday.

Market Moves


  • The STOXX 600 rose 0.1%
  • Futures on the S&P 500 were little changed
  • Futures on the NASDAQ 100 were little changed
  • Futures on the Dow Jones Industrial Average fell 0.1%
  • The Index fell 0.2%
  • The fell 0.2%


  • The Dollar Index rose 0.2%
  • The fell 0.1% to $1.2173
  • The increased 0.2% to 109.44 per dollar
  • The was up 0.2% at 6.39636 per dollar
  • The fell 0.3% to $1.4137


  • The yield on 10-year Treasuries was little changed at 1.56%
  • Germany’s yield was little changed at -0.20%
  • Britain’s yield was little changed at 0.80%


  • fell 0.7% to $71 a barrel
  • fell 0.3% to $1,894 an ounce

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