S&P 500 is trading down 0.39% at 4008.02
Global shares recovered on Tuesday on optimism about an easing of China’s crackdowns on tech and COVID-19, but concerns about rising prices and slowing growth worldwide set a nervy tone elsewhere in markets.
European shares followed up a positive start in Asia, with the STOXX index of Europe’s 600 biggest stocks up 1.7% and U.S. stock futures, S&P 500 e-minis, suggesting Wall Street would follow suit.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 2.5%, but the index is still down 16.8% so far this year.
“There was a good session in Asia and, taking the S&P 500 as a guide, the U.S. looks set to be up around 1%…but looking ahead markets remain fixated on inflation and rate hikes,” said Philip Shaw, Chief Economist at Investec in London.
There were signs of nervousness in bonds, currencies, and commodities as economic growth fears in the world’s two largest economies have re-emerged following weak retail and factory figures in China and disappointing U.S. manufacturing data.
An index compiled by U.S. bank Citi that monitors whether economic data comes in better or worse than economists had been expecting is back in negative territory.
On technical fronts, S&P 500 RSI stood at 42.67, and currently it is trading below 20 and 50 days MA & above 5 days MA. So, the SELL position can be taken with the following target and stop-loss: