U.S. futures, European shares waver amid upbeat Chinese data and trade signals Dollar, Treasury yields slip after Trump renews attack on Fed Oil slips below $64 Key Events
European stocks and futures on the , and oscillated this morning after most Asian shares closed well off their highs or even at losses, despite positive economic data from China and upbeat earnings results from U.S. banks on Friday.
STOXX 600 Daily Chart
The edged lower as gains in banking shares were offset by a slide in food and beverage stocks. However, the pan-European benchmark reversed to climb into green territory by the late European morning. Technically, the price of the index is trading within a falling flag—bullish following the 4% jump of March 25-Apr. 3.
In the earlier Asian session, regional equities staggered after racing toward 9-month highs as U.S. Treasury Secretary Steven Mnuchin and Chinese foreign ministry spokesman Lu Kang boosted hopes for an imminent trade deal, while and data from China came in higher than expected.
Shanghai Composite Daily Chart
China’s (-0.34%) gave up a 2.05% surge, to close 1.06% away from the highest levels since March last year. Why would Chinese shares falter just when trade optimism is pointing higher? While as of the time of writing there were no known fundamentals to explain this counterintuitive move, technically we consider it a downward correction in the form of a falling flag—bullish following the 8.57% surge in the six sessions between March 29 and Apr. 8. That itself marked a return move to an upside breakout of an ascending triangle, after the major moving averages entered a bullish formation.
Hong Kong’s (-0.33%) also turned a 1.41% intraday high into a loss.
While South Korea’s (+0.42%) closed at the highest levels since early October,