Opening Bell: Investors Rotate Into Long U.S. Bonds, Yen, Raising Red…

Markets cautious ahead of Fed hike and trade escalation Investors rotate into longer-dated Treasurys at a crucial technical point

Yen strengthens: a warning to investors?

China shares jump on expanded global access via MSCI and FTSE

Japan’s Nikkei 225 set for 27-year high

Key Events

Futures on the , and were hovering in positive territory this morning, while European shares seesawed after ongoing trade tensions spurred a selloff in the automotive sector.

STOXX 600 Daily Chart

The pan-European opened 0.12 percent higher but then fell 0.07 percent as of the time of writing, dragged lower by car manufacturers. Technically, the higher open hit a brick wall of sales orders above the 200 DMA, pushing prices down to the 50 DMA, where traders supported the price.

The price is meandering within a cluster of major moving averages (MAs)—which have met with the downtrend line since July 31—for the fourth consecutive day. Converging supply and demand pressures create this vortex of technical milestones. A move above 385.00 would suggest that the bulls took control, while a close below 382 would confirm the downtrend.

Earlier, during the Asian session, Chinese stocks outperformed, after global index provider MSCI announced it is considering quadrupling the weighing of large caps from the Asian country in its global benchmark. Meanwhile, the FTSE Russell is already expected to include Chinese shares in its benchmark this week. This gave traders some respite from worries over the country’s trade dispute with the US, allowing them to focus on the prospect that the broadened global access to Chinese equities stands to elevate foreign demand, which in turn is poised to prop up prices.

The climbed 0.92 percent to the highest level since August 1, potentially bottoming out, after closing for a third

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