Opening Bell: U.S. Futures, Europe Stocks Diverge; Dollar, Gold Rise | Investing.com

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  • Market attempts to pick direction ahead of Fed minutes
  • Europe gains with higher oil prices
  • Bitcoin struggles

Key Events

Futures on the , , and fell in trading on Wednesday as traders’ expectations for faster monetary tightening by the Fed were dented by the  approach from New Zealand’s central bank—rates were hiked just 0.25% despite there hitting 4.9% in Q3. Analysts expect New Zealand’s interest rate to reach 2% next year. Meanwhile, European markets rose with oil stocks.

Gold recovered.

Global Financial Affairs

It is unusual to see such a difference in direction between US and European markets, but in some instances, markets in each area respond to different events.

All four US contracts were in the red as traders there are awaiting the publication of the later today to see if there is any additional clarity on the timing of future rate hikes.

In Europe the opened 0.1% higher and extended gains up to 0.55%. The pan-European gauge rebounded from its worst session in almost two months on Tuesday. It ended a four-day straight slide which was driven by rising coronavirus cases across the continent and the prospect of higher interest rates to try and curb inflation. 

Oil stocks were some of the best performers in European markets, rising almost a full percentage point, tracking rising crude prices. The rally in oil prices was a vote of no confidence in President Biden’s decision to lead a coalition of major oil consuming countries to tap into in order to increase supply and reduce prices.

Miners jumped 1.2%, following rising prices on an improved outlook for Chinese demand.

The Asian market provided mixed results, as investors were grappling with the outcome of Jerome Powell’s renomination as Chair of the US Federal Reserve and its implications on monetary policy in the face of the highest inflation in 30 years.

Japan’s was dragged down 1.58% by a slide in growth stocks, underperforming its regional peers.

The surged over 0.7% as it ended a six-day losing streak on the measured interest rate hike.

US stocks advanced with economically sensitive sectors yesterday, at the expense of tech stocks after yields moved higher, which stifled the rally for growth stocks.

The closed higher at the end of a volatile day.  and  stocks outperformed amid a reflation trade.

The added 0.55% of value, leading the major US indices. However, the advance may be a final attempt before a reversal.

The index may be forming an H&S top.

Powell’s remaining the Fed chief intensified bets for higher interest rates sooner, leading to a selloff in Treasuries. However, yields on the Treasury note were off their lows, but still lower.

The reached the highest since July 9.

Dollar Index Daily

The move extended the breakout from the double bottom.

rebounded, ending a four-day selloff, but after blowing out an H&S bottom.

Gold Daily

Gold Daily

The yellow metal may have found support at the bottom of a rising channel.

is struggling to find direction.

Bitcoin Daily

Bitcoin Daily

Bulls are grabbing onto where the cryptocurrency previously found support. 

prices fluctuated as investors were weighing a producers and their biggest customers.

Oil Daily

The price gave up an advance as it neared the top of its falling channel.

Up Ahead

  • The announces its policy decision on Thursday.
  • US equity and bond markets are closed on Thursday.
  • On Thursday, German is published.

Market Moves

Stocks

  • The STOXX 600 rose 0.4% as of 8:38 a.m. London time
  • Futures on the S&P 500 were little changed
  • Futures on the NASDAQ 100 were little changed
  • Futures on the Dow Jones Industrial Average were little changed
  • The Index fell 0.4%
  • The was little changed

Currencies

  • The Dollar Index was little changed
  • The was down 0.26% at $1.1216
  • The down 0.07% to 115.03 per dollar
  • The was little changed at 6.3912 per dollar
  • The was little changed at $1.3368

Bonds

  • The yield on 10-year Treasuries declined two basis points to 1.64%
  • Germany’s yield fell one basis point to -0.23%
  • Britain’s yield was little changed at 0.99%

Commodities

  • rose 0.3% to $82.57 a barrel
  • rose 0.2% to $1,792.13 an ounce



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