News

US Stock Futures Plunge on COVID19 Resurgence

Equities

Major US stock index futures tumbled on record coronavirus cases. Several states reported a record spike in new coronavirus cases and hospitalizations. Investors are afraid that this wave could force another lockdown, which could disrupt the economic recovery. The Dow Jones Industrial Average futures fell to a ten-day low of 25002, the S&P500 futures declined to 3005, and Nasdaq futures plunged to 9893.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, recovered from partial losses incurred this week, rising to 97.40 amid growing demand for safer currencies. The rising coronavirus cases in the United States are weighing on investors' risk appetite and driving them towards safe currencies such as the Japanese yen, Swiss franc, and US dollar. The EURUSD declined to $1.1223, the GBPUSD fell to $1.2403, and the risk-sensitive AUDUSD dropped to $0.6846. Market participants are looking forward to the final reading of the first quarter GDP along with weekly jobless claims.

Metals

Gold prices continued to hover near an eight-year high, supported by demand for safety. However, the sharp drop in equities triggered fears of a fall in gold prices on demand for liquidity, similarly to what happened back in March. During the Asian session, the price of a gold ounce dropped to $1754 after trading at an eight-year high of $1779 yesterday, and currently, recovered to $1767. Meanwhile, the price of a silver ounce declined to $17.44, and palladium futures fell to $1866, the lowest since the 4th of June.

Oil

Oil prices extended declines amid growing woes over the second round of infections. The rising number of new cases, especially in the United States, is alarming. Investors are afraid that a serious wave of infections can lead to a closure of business activity again and weigh on oil-demand levels. On the other hand, the US Energy Information Administration reported a buildup 1.442 million barrels in inventories. The West Texas Intermediate crude August delivery fell to $37.12, and Brent August delivery dropped to $39.47.

Major Economic Events

GMT Country Event Expectation Previous

11:30

EZ

 ECB Publishes Account of Monetary Policy Meeting 

-

-

12:30

US

 GDP (QoQ) (Q1)

-5.0%

-5.0%

12:30

US

 GDP Price Index (QoQ) (Q1)

1.4%

1.6%

12:30

US

 Durable Goods Orders (MoM) (May)

11.2%

-17.7%

12:30

US

 Initial Jobless Claims

1300

1508

20:30

US

Bank Stress Test Results

-

-


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