Opening Bell: Vanishing Hopes of Broad U.S.-China Trade Deal Hit U.S Futures

 | Oct 10, 2019 22:22

  • 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

h2 Key Events/h2

Futures on the S&P 500, Dow and NASDAQ 100 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 may jeopardize chances of a broad deal between the two economic powers.

Meanwhile, Europe's STOXX 600 trimmed half of yesterday’s bounce off the 200 DMA.

In the earlier Asian session, most indices gained, with South Korea’s KOSPI (-0.88%) as the notable exception. Japan’s Nikkei 225 (+0.45%) recouped losses after bouncing off the weekly lows, above the 200 DMA.

h2 Global Financial Affairs/h2

Yesterday, U.S. equities rebounded on trade talks optimism. The NASDAQ Composite (+1.02%) outperformed, followed closely by the S&P 500 (+0.91%).