News

Stock Futures Rally to Record on Stimulus Hopes

Equities

Major US stock index futures soared to a fresh record high amid optimism over fiscal stimulus. The Senate Majority Leader Mitch McConnell seems to lean towards agreeing on a Covid19 relief bill. The White House is also pushing to include cheques to support families. This development bolstered risk appetite and drove stock benchmarks higher. The Dow Jones Industrial Average futures rose to 30279, the S&P500 future crossed above 3700 rising to 3712, and Nasdaq futures advanced to 12663.

USD

The dollar index, which measures the greenback against a basket of major currencies, held steady near 90.80 awaiting fresh fundamental drivers. Market participants are waiting for more clarification on the possible fiscal stimulus and Brexit developments.

GBP

The British pound traded sideways with a focus on the meeting between the UK Prime Minister and the European Commission Chief. Boris Johnson and Ursula von der Leyen will meet tonight to try to reach a deal that would set the relation between the United Kingdom and the European Union post Brexit. The Joint Committee succeeded in securing a deal regarding trade in Ireland, which also removed some constraints from the internal market bill. However, there are still key issues standing in the bigger deal among them, fisheries, governance, and level playing field. The GBPUSD is currently trading near $1.3380, and the EURGBP is hovering above 0.9050.

Metals

Gold prices retreated from the interim top despite chances of fiscal stimulus. The risk-on sentiment is controlling, and it was clear with the stock market rally. Investors seemed to favor risk to hedging. The price of a gold ounce eased to $1855. Meanwhile, the price of a silver ounce fell to $24.20, and Palladium futures dipped to $2313.

Oil

Oil prices were almost flat as investors weigh the soaring coronavirus cases to the hopes of fiscal stimulus. The number of new cases is sky-rocketing, implying possible new restrictions on movements, which would disrupt the economic recovery. Meanwhile, US Senates seem to push for a relief bill. The West Texas Intermediate crude January delivery is trading near $45.70, and Brent Blend February delivery traded slightly below $49.

Major Economic Events

GMT Country Event Expectation Previous

15:00

US

 JOLTs Job Openings (Oct)

6.300

6.436

15:00

CA

 BoC Interest Rate Decision

0.25%

0.25%

15:30

US

 Crude Oil Inventories

-2.358

-0.679

 

 

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