News

Stock Futures Recover from Monday’s Plunge

Equities

US stock-index futures extended rally despite coronavirus outbreak. The rally started after the measures taken by the People Bank of China on Monday to lessen the negative consequences on the economy and financial markets. On the other hand, upbeat economic data boosted US stocks. The better-than-expected ISM Manufacturing PMI and factory orders fueled the rally. The Dow Jones Industrial Average futures rose to 28847, the S&P500 futures climbed to a two-week high of 3299, and Nasdaq futures advanced to a record high of 9369. Meanwhile, the Shanghai composite recovered to 2842.

USD

The dollar index, which measures the greenback against a basket of major currencies, settled higher for the second consecutive day closing at 98.01 on upbeat economic data. After a solid ISM Manufacturing PMI reading, the December Factory orders surged by 1.8% beating estimates of 1.2%. The US 10-year yield rose to 1.642%, the USDJPY advanced to 109.72, and the EURUSD dipped to $1.1033. Market participants are looking forward to ADP Nonfarm Employment Change and ISM Non-Manufacturing PMI to grasp further insight into the US economic activity in January.

Metals

Gold prices plunged amid improved risk sentiment. The measures taken by the PBOC boosted the demand for risky assets such as stocks. The price of a gold ounce fell to a two-week low of $1549, the price of a silver ounce declined to $17.52, while palladium futures climbed to $2387.

Oil

Oil prices settled lower for the fifth consecutive day at a thirteen-month low. Investors are afraid that the coronavirus would weigh on the economic activity and negatively affect the demand for oil. On the other hand, the American Petroleum Institute reported a rise of 4.180 in US weekly crude oil stock last week. The West Texas Intermediate crude futures dropped to $49.33, and Brent futures declined to $53.72. The spread between Brent and WTI narrowed further to $4.09, the lowest in five months.

Major Economic Events

GMT Country Event Expectation Previous

9:00

EU

Services PMI (Jan)

52.2

52.8

9:30

UK

Services PMI (Jan)

52.9

50.0

10:00

EU

Retail Sales (MoM) (Dec)

-0.9%

1.0%

12:15

EU

ECB President Lagarde Speaks  

 

 

13:15

US

ADP Nonfarm Employment Change (Jan)

156

202

13:30

US

Trade Balance (Dec)

-48.2

-43.1

15:00

US

ISM Non-Manufacturing PMI (Jan)

55.0

55.0

15:30

US

Crude Oil Inventories

2.831

3.548


Disclaimer
 

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