Global stocks, U.S. futures slip as Trump resumes trade offensive on China Apple bucks falling stock on reassurance of production capabilities outside China Yields drop as safe-havens climb on risk-off Oil tumbles on dismal outlook of low demand and oversupplied market Key Events
Futures on the , and tracked global stocks lower as the U.S. turned its trade tariff salvos from Mexico—which boosted the rally compounded by —back to China.
The opened lower, threatening to end a three-day winning streak and seven sessions out of eight of sealing gains.
In the earlier Asian session, Hong Kong’s (-1.94%) underperformed, falling back below the 200 DMA after scaling above it for the first time since Jan. 31, amid mass protests against an extradition bill that would allow people to be sent to mainland China for trial.
Nevertheless, the climbed to the strongest level since December amid signs of tightening funding costs. While the HKD completed a double-top, its technical signals are questionable as the currency is not allowed to trade freely, as it’s controlled by the Hong Kong Monetary Authority. Despite being the third most active currency in Asia—and the eighth most traded currency in the forex marketplace—the HKD is not a major reserve currency.
Shanghai Composite Daily Chart
With renewed threats of U.S. tariffs hanging over the country, China’s (-0.56%) fared as the region’s second worst performer. After jumping 2.5% on Tuesday — on the government’s stated commitment to ramp up stimulus to offset the trade war’s adverse effects on its market—and closing near the top of the session, the index opened lower today and then extended the decline. Technically, it traded according to its descending triangle, after finding a dual resistance by the 100 DMA and the top of the triangle, where supply overcomes demand.