Opening Bell: U.S. Futures, Yields Rebound; Asia Hit By Fresh Trade Salvos

U.S. futures, European shares rebound; Asian stocks take a hit from fresh trade salvos Yields pare losses, curve inversion eases after sending key recession signal U.S. indices top out; utilities underperform Key Events

Equities in Europe followed U.S. futures higher this morning, against a falling Asian session, as Treasury yields pared losses after dipping to the lowest level in 20 months on Wednesday—deepening a key component of the yield curve that historically heralds a recession 18 months down the line.

S&P 500 Futures 60-Min Chart

Contracts on the , , and climbed for seven straight hours—though the presumed bearish counterforce within a downtrend suggests this is merely a technical pullback, rather than a bottom.

The advanced, with energy companies tracking oil prices, which also edged higher for seven hours this morning. The pan-European gauge is climbing back above the neckline of a H&S top after closing slightly below it yesterday. The European oil benchmark, however——has hit resistance levels from Tuesday and is set to form its first red candle of the current rally.

In the earlier Asian session, most regional indices tracked yesterday’s U.S. decline as the U.S.-China trade war intensified, with high-level Chinese officials of “naked economic terrorism.” The trade-led selloff finally caught up with Hong Kong’s (-0.44%), China’s (-0.30%) and Japan’s (0.29%), while South Korea’s (+0.77%) was the only major benchmark to close in the green, as bargain hunters bought a dip that reached 10% since mid April.

Global Financial Affairs

On Wednesday, U.S. equities slipped to a 12-week low.

The extended its decline by 0.69%, with all sectors but (+0.02%)—which barely managed to cling onto gains—closing in the red. It’s ironic that the most export-reliant sector outperformed amid a worsening trade outlook—though the basic materials sector should not be confused with what would be

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