Morning Market Report
Stock-index futures point lower, putting rebound in danger after China casts doubt on further trade talks
Brexit fears re-emerge
How are the major benchmarks performing?
Futures for the Dow Jones Industrial Average YMM9, -0.65% fell 158 points, or 0.6% to 25,705, while those for the S&P 500 ESM9, -0.66% lost 18.10 points, or 0.6%, to 2,864.5 Nasdaq-100 futures NQM9, -0.84% meanwhile, declined 59.50 points, or 0.8% to 7,541.
What’s driving the market?
The Chinese government and state media sent a clear signal to markets Thursday and Friday that it is reluctant to resume trade talks with the U.S., when a spokesman for the Ministry of Commerce called the Trump administration’s moves to raise tariffs last week, and the threat of additional tariffs on the roughly $300 billion in annually imported Chinese so far untouched by new duties, “bullying behavior,” that has resulted in “severe negotiating setbacks.”
this is also just sabre-rattling by china to make it appear strong when it is weak-as already mentioned-they will not be selling much, if any, of it's US backed debt as who will they sell it to?
Meanwhile, the British pound came under pressure after talks between the country’s Labour and Conservative parties ended without an agreement on how to leave the European Union, raising fears of a disorderly exit, potentially further adding to geopolitical uncertainty that has weighed on global equity markets.
As the US earnings season winds down, of the 457 S&P 500 companies reporting about 75% have beaten profit expectations, according to Reuters data.
In rates, the sudden trade wind chilling helped Treasuries, with the 10-year yield down at 2.37% after a second strong week running for bond markets.
Elsewhere in FX, the dollar lost a little of its shine against the safe-haven yen to stand at 109.64 from a top of 110.03. Against a basket of currencies, the dollar increased for a second day to head for its best week since February.
Would argue that the dollar's performance is down to the system needing to acquire them as they have trillions of "assets" that need settling and the paper just is not cutting it at present.
Of note, after soaring 100% in two weeks, Bitcoin tumbled over 20% at one stage after what appeared to be a flash crash. It was last down 7%, albeit back on course for its third week of gains and having doubled in value this year.
see here
Bitcoin Drops $1,000 In Value Amid Market Sell-Off
https://www.coindesk.com/bitcoin-drops-1000-in-value-amid-market-sell-off
Market Snapshot
S&P 500 futures down 0.5% to 2,864.25
STOXX Europe 600 down 0.6% to 380.63
MXAP down 0.02% to 154.55
MXAPJ down 0.8% to 504.53
Nikkei up 0.9% to 21,250.09
Topix up 1.1% to 1,554.25
Hang Seng Index down 1.2% to 27,946.46
Shanghai Composite down 2.5% to
2,882.30
Sensex up 1% to 37,777.24
Australia S&P/ASX 200 up 0.6% to 6,365.30
Kospi down 0.6% to 2,055.80
German 10Y yield fell 1.1 bps to -0.106%
Euro unchanged at $1.1174
Italian 10Y yield fell 6.2 bps to 2.311%
Spanish 10Y yield fell 4.7 bps to 0.858%
Brent futures up 0.2% to $72.74/bbl
Gold spot little changed at $1,286.67
U.S. Dollar Index little changed at 97.90
US Event Calendar-data
10am: Leading Index, est. 0.2%, prior 0.4%
10am: U. of Mich. Sentiment, est. 97.2, prior
97.2; Current Conditions, est. 112.2, prior
112.3
Oil trade suggests that whatever the drop is on the cask open it may not last long-it's friday don't forget!
see cap #4-pretty low volume.
Please see this from yesterday
>>6514158 pb This chart proves the existence of a POTUS 'Put'.
since the FRB has backstopped the mkts for decades they remove this 'put' for war(s), recession(s) or and create chaos so that they can beign the 10 year boom/bust cycle again for it and it's owners benefit.
https://www.zerohedge.com/news/2019-05-17/global-markets-yuan-tumble-china-crushes-trade-talk-optimism
https://www.marketwatch.com/story/stock-index-futures-point-lower-putting-rebound-in-danger-after-china-casts-doubt-on-further-trade-talks-2019-05-17?siteid=rss&rss=1
https://www.bloomberg.com/markets/stocks/futures
https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx
https://www.dailyfx.com/crude-oil