* Major U.S. indexes decline; transports especially weak
* Energy weakest major S&P sector; staples lead gainers
* Euro STOXX 600 index off ~0.5%
* Dollar, crude ~flat; gold, bitcoin rise
* U.S. 10-Year Treasury yield ~1.25%
July 27 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
RED TIDE (1011 EDT/1411 GMT)
Major U.S. stock indexes are red in early trade Tuesday ahead of earnings reports from the most valuable companies on Wall Street and in the run-up to the two-day Federal Reserve meeting.
Apple , Microsoft , and Alphabet are due to release quarterly numbers after the closing bell today, while Facebook reports Wednesday and Amazon.com
reports Thursday. These five companies account for nearly a quarter of the overall S&P 500's $39.75 trillion market cap.
The Fed will conclude its two-day policy meeting on Wednesday.
More economically sensitive sectors are among the biggest losers on Tuesday, while defensive groups outperform. This, with the U.S. 10-Year Treasury yield sliding back to the 1.25% area.
Of note, the NYFANG Index is falling for a second day, after once again failing to set a new closing high.
Meanwhile, the iShares China Large-Cap ETF is continuing lower by around 4%.
(Terence Gabriel)
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CHINA LARGE-CAP ETF COLLAPSE WAS IN THE STARS (0900 EDT/1300 GMT)
The iShares China Large-Cap ETF ended Monday off more than 5%, putting it down nearly 26% from its February 2021 high.
Now, in the wake of another sharp fall in Chinese markets
, FXI is quoted down around 4% in premarket trade on Tuesday, suggesting an open of around $39 a share. Action has the ETF on track for a 16% quarterly collapse, which would be its biggest such drop since Q3 2015.
Earlier this year, in Q1, FXI formed a shooting-star like candle on the quarterly charts, warning that the rally from its March 2020 low, may have burned out :
Of note, FXI's all-time high in 2007 was marked by a quarterly shooting-star like candle pattern. That is, action included a long upper shadow, or wick, and roughly the same open and close.
Subsequently, FXI retracements of its 2007/2008 bear-market, into 2010, 2011, 2015, and 2018 ended with shooting-star like quarterly candles, and around major Fibonacci levels. The advance into 2021 exhausted with a probe just above the 61.8% retracement.
If the support line from the 2008 low is to once again prove to be a magnet, FXI, at a minimum, still needs to fall to the $34.75 area. Such a decline would put it down just over 36% from its February 2021 high, and about 26% post the completion of the quarterly shooting-star like candle's formation. The averages of the four preceding declines are around 37% from the high, and 29% after the bearish quarterly candle solidified.
(Terence Gabriel)
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FOR TUESDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EDT/1300 GMT - CLICK HERE:
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(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
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