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· S&P 500 Technical Analysis: US Stocks May Fall if H&S Pattern Holds

The S&P 500 may be carving out a bearish Head and Shoulders (H&S) topping pattern after breaking rising trend line support guiding the bellwether stock index higher from late-March lows. Confirming the setup seems to call for a daily close below the 2726.50-71.00 area, which approximates its neckline.

From there, sellers are likely to face the next layer of support in the 2603-26 zone. However, the measured down move implied by the H&S setup seems to suggest a push through the 2600 figure is probable if the pattern develops as advertised.

That would portend deeper losses to follow. An interim stop at minor support marked by the December 2018 low at 2316.75 may then set the stage for a challenge of the March 23 low at 2174.00. Invalidating the bearish setup appears to call for prices to establish a foothold back above the 3000 figure.

· Asia shares dragged higher by S&P 500, oil and gold jump

Asian shares were hauled higher by S&P 500 futures on Monday and oil prices hit a five-week peak as countries’ efforts to re-open their economies stirred hopes the world was nearer to emerging from recession.

Still, MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%. Japan's Nikkei .N225 rose 0.5% and Chinese blue chips .CSI300 0.5%.

· Tokyo stocks gain as virus cases slow in Japan, but U.S.-China tensions weigh

Japanese shares rose on Monday as signs of a slowdown in coronavirus infections raised optimism that the government would soon ease restrictions in additional prefectures, although escalating U.S.-China trade tensions kept investors wary.

The benchmark Nikkei average gained 0.5% to 20,133.73, erasing early losses.

The daily number of new coronavirus cases reported in Tokyo dropped to five on Sunday, the lowest since the capital was placed under a state of emergency on April 7.

Japan lifted a state of emergency in large parts of the country on Thursday but said it would remain in place in Tokyo until the novel coronavirus was contained.

Increasing tensions between the United States and China, the world’s two largest economies, sent shares of chipmaking-related companies and electric component makers reeling.

· China equities rise after property data; Huawei curbs hurt tech shares

China shares ended higher on Monday as investors took hope from data showing home prices rose in April, but renewed trade tensions between Beijing and Washington and the threat of a second wave of coronavirus infections limited gains.

At the close, the Shanghai Composite index was up 0.24% at 2,875.42.

· European markets open sharply higher as lockdown lifting continues

uropean stocks opened sharply higher Monday as investor confidence rises cautiously with lockdown restrictions around the world being lifted.

The pan-European Stoxx 600 jumped 1.8% at the start of trading, with basic resources climbing 3.3% to lead gains as all sectors and major bourses entered positive territory.

Economies across the continent continue to lift lockdown restrictions, allowing more businesses to cautiously open. There is growing discontent among swathes of the public at the speed of the lifting of restrictions, however, with large-scale anti-lockdown protests seen in Germany this weekend.