· U.S. stock index futures were lower Thursday morning, as market participants awaited further earnings reports.
At around 01:30 a.m. ET, Dow futures fell 67 points, indicating a negative open of more than 85 points. Futures on the S&P and Nasdaq were also seen slightly lower.
Wall Street ended Wednesday’s session in the red, due to sharp losses in the health sector. Some of the reaction in the sector was caused by prospects of tighter regulation.
Nonetheless, corporate results remain the biggest focus. Travelers, Union Pacific, Blackstone are set to publish results before the bell. Whereas American Express will report after the bell.
Investors will also be keeping an eye on any further developments from the U.S. Federal Reserve. Atlanta Fed President Raphael Bostic will be speaking at 12 p.m. ET.
On the data front, there will be retail sales at 8.30 a.m. E.T. as well as jobless claims. Flash manufacturing and services PMIs will be published at 9.45 a.m. ET.
· S&P 500 CHART WARNS BEARISH REVERSAL MAY BE IMMINENT
Bearish cues continue to build up in S&P 500 technical positioning. The appearance of a Rising Wedge formation along with negative RSI divergence have been warning of a looming top for some time. A series of indencisive candles with telltale extention at the upper wick – speaking to failed forays to the upside – is now seeing tepid follow-through toward the Wedge floor.
Confirmation of reversal requires a close below this as well as the 2865.00-78.50 resistance turned-turned-support zone. Such a move would initially expose the next downside barrier in the 2807.50-24.25 area. The broader implications would be weightier however, arguing for a double top having been set below 2950 and beckoning a lasting risk-off pivot across worldwide capital markets.
The pan-European STOXX 600 edged into negative territory shortly after the opening bell, with sectors and major bourses largely in the red.
Purchasing Managers Indexes (PMI) from France and Germany failed to calm fears that a Europe-wide economic slowdown may be imminent. German manufacturing data came in below expectations, while France’s data also showed a decline in output.
Market focus is also attuned to corporate earnings, with first-quarter reports heavily influencing the performance of European stocks on Thursday.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.4 percent, reversing course after brushing its highest since late July 2018 early in the trading session.
Investors’ immediate focus turned to the release of Purchasing Managers’ Indexes (PMIs) for the manufacturing and service sectors in Europe later on Thursday to provide more clues on strength of the euro zone economy.
Market participants are also eyeing signs of progress in U.S.-China trade negotiations.
· Japan’s Nikkei retreated from a 4-1/2-month high on Thursday as defensive stocks fell and Canon tumbled on a report that it will cut its earnings forecast.
The Nikkei share average dropped 0.84 percent to 22,090.12, after touching the highest level since early December on the previous day.
· Shanghai stocks retreated from a 13-month closing high to end lower on Thursday, as investors locked in gains following a strong rally underpinned by signs of an economic rebound.
The blue-chip CSI300 index ended 0.4 percent weaker at 4,072.08 points, while the Shanghai Composite Index closed 0.4 percent lower at 3,250.20 points.
The stock market, which has priced in economic stabilisation, has surged roughly 30 percent so far this year. However, investors kept a cautious stance as they looked for further clues on the health of the global economy.
Reference: Reuters, CNBC, Daily FX
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