U.S. futures rebound from earnings skepticism; European, Asian shares complete bullish patterns Subdued Treasury yields, muted trading volumes underpin investors’ lack of confidence in equity rally Goldman Sachs stock tumbles as banks remain vulnerable to Fed and inflation uncertainty Dollar readies to breakout with upward bias Key Events
European shares and futures on the , and leaped forward this morning, suggesting U.S. indices are poised to wipe out yesterday’s losses and add gains as investors try to gauge the trajectory of the new earnings season.
STOXX 600 Daily Chart
The edged higher with retail and chemical stocks, climbing for the fifth consecutive day to reach the highest level since Aug. 9. Technically, the index completed a falling-flag pattern—providing its closing price remains above the pattern.
Shanghai Composite Daily Chart
In the earlier Asian session, local indices reversed yesterday’s regional pattern. China’s (+2.39%) and Hong Kong’s (+1.07%)—which completed a falling flag like the pan-European benchmark—outperformed Japan’s (+0.24%)—which still managed to hit to the highest since Dec. 3—and South Korea’s (+0.26%). The latter index found resistance by yesterday’s shooting star, which reached the highest price since October.
Global Financial Affairs
On Monday, equities in the U.S. ended a three-day advance, after (NYSE:) and (NYSE:) failed to hold onto gains that had been spurred by upbeat earnings results on Friday. While those strong reports had prompted hopeful speculation that this earnings season wouldn’t be as bad as previously feared, banks earnings are particularly vulnerable in an environment where the Fed tries to fine-tune a consistent path to monetary policy amid ongoing uncertainty inflation dynamics.
The slipped 0.06%, getting further away from a six-month high, with all sectors but (+0.59%), (+0.4%) and (+0.2%) ending in the red. shares (-0.63%) were the obvious fallers, with Citigroup stock dropping as