European Open: Futures markets open lower as bears retain their grip

If you like red then you’d be feeling right at home with the equity market selloff, as Asian equities tracked Wall Street lower and futures markets are also down.

Charts (5)

Asian Indices:

  • Australia's ASX 200 index fell by -132.4 points (-1.9%) and currently trades at 6,829.20
  • Japan's Nikkei 225 index has fallen by -778.65 points (-2.88%) and currently trades at 26,232.68
  • Hong Kong's Hang Seng index has fallen by -625.1 points (-2.57%) and currently trades at 23,664.80
  • China's A50 Index has fallen by -67.95 points (-0.45%) and currently trades at 15,158.36

UK and Europe:

  • UK's FTSE 100 futures are currently down -138.5 points (-1.87%), the cash market is currently estimated to open at 7,331.28
  • Euro STOXX 50 futures are currently down -111 points (-2.67%), the cash market is currently estimated to open at 4,053.60
  • Germany's DAX futures are currently down -359 points (-2.32%), the cash market is currently estimated to open at 15,100.39

US Futures:

  • DJI futures are currently down -398 points (-1.17%)
  • S&P 500 futures are currently down -222.5 points (-1.57%)
  • Nasdaq 100 futures are currently down -59.25 points (-1.36%)

20220127moversFOREXfx

Equity markets continued to sell off overnight with traders having to quickly adjust to their red monitors. The majority of benchmarks fell over -1% with some indices in China and Japan falling over -2%. The Nikkei is a clear underperformer as it also has the stronger yen to contend with.

The short end of the yield curve continued to rise in the US overnight, with the 2-year hitting a fresh high of 1.196%. The Fed signalled they’re on track to move ahead with hikes, with some now speculating five hikes this year. The US dollar moved higher against all expect the yen, driving NZD/USD to a fresh 14-month low and now trades just above 0.6600. New Zealand’s inflation report was overshadowed by the risk-off tone which has continued to sweep its way across global markets. NZD was broadly lower against all majors and the Australian dollar was down against al except the Kiwi.

STOXX 600 – corrective bounce complete?

20220127stoxxFX

We noted in a video on Monday that prices were on the cusp of breaking trend support. It fell hard and fast, found support around 455 and a two-day countertrend rally stalled around the monthly S1, just below the broken trendline. Given futures markets are pointing lower then we suspect its two-day bounce has complete its move and prices are now poised to break to new lows.

 

Metals feel the weight of FOMC

Gold suffered its worst session in 18 yesterday, and extended losses overnight. Currently trading around 1815 it looks like bears want to drive this back to 1800, near its 200-day eMA. Silver is currently lower for a fifth consecutive day and trades around 23.30.

Elsewhere in commodities, WTI has pulled back to 86.50 after reaching a high of 88.00 yesterday. Its daily trend structure remains bullish above 82.0

FTSE 350: Market Internals

20220127moversFTSEfx

FTSE 350: 4218.37 (1.33%) 26 January 2022

  • 266 (75.78%) stocks advanced and 81 (23.08%) declined
  • 5 stocks rose to a new 52-week high, 6 fell to new lows
  • 36.18% of stocks closed above their 200-day average
  • 28.49% of stocks closed above their 50-day average
  • 7.69% of stocks closed above their 20-day average

Outperformers:

  • + 8.60% - 4imprint Group PLC (FOUR.L)
  • + 7.39% - International Consolidated Airlines Group SA (ICAG.L)
  • + 6.35% - Baillie Gifford US Growth Trust PLC (USAB.L)

Underperformers:

  • -14.5% - Fresnillo PLC (FRES.L)
  • -9.39% - Quilter PLC (QLT.L)
  • -6.86% - Playtech PLC (PTEC.L)

 

Up Next (Times in GMT)

20220127calendarGMT

 

 

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

  1. Open a Forex.com account, or log in if you’re already a customer.
  2. Search for the pair you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account