U.S. futures weaken on mixed U.S.-China trade talks signals Dollar falls as trade caution prevails Treasury yields and WTI develop bearish patterns Key Events
Futures on the , and dropped with European stocks this morning, as lingering tensions between the U.S. and China dented sentiment ahead of trade talks kicking off in Washington today.
While U.S. contracts initially jumped on reports that U.S. tariff hikes scheduled for Oct. 15 might be postponed and some U.S. companies might be granted a waiver to supply Chinese tech giant Huawei, they later gave up those gains on signs that the latest U.S. move to blacklist 28 Chinese firms and restrict visas to some Chinese officials between the two economic powers.
Meanwhile, Europe’s trimmed half of yesterday’s bounce off the 200 DMA.
In the earlier Asian session, most indices gained, with South Korea’s (-0.88%) as the notable exception. Japan’s (+0.45%) recouped losses after bouncing off the weekly lows, above the 200 DMA.
Global Financial Affairs
Yesterday, U.S. equities rebounded on trade talks optimism. The (+1.02%) outperformed, followed closely by the (+0.91%).
S&P 500 Daily Chart
The SPX rebounded after confirming the tenacity of bears in the the two previous sessions—after they forced a small H&S top last Tuesday, . Tuesday’s low found support by an uptrend line (red) since June 3—if violated, it would mark the failure of an ascending triangle, presumed to be bearish. Meanwhile, the price is below the medium-term uptrend line since the December bottom, for the second time.
UST 10-Year Hourly Chart
Over to bond markets, yields on Treasurys struggled against resistance since the week’s highs.
DXY Daily Chart
The fell for the second day, below its uptrend line since Sept. 13, but well above