News

US Stock Futures Edge Higher; Greenback Tumbles

Equities

Major US stock index futures edged higher as the monetary and fiscal measures taken by central banks and governments around the world eased investors’ woes for a while. The Dow Jones Industrial Average futures inched higher to 20882, the S&P500 futures rallied to 2494, and the Nasdaq futures advanced to 7630. Despite this rally, US stock indices remain well-down on the week.

USD

The dollar index, which measures the greenback against a basket of major currencies, faltered at a three-year high of 102.99 and tumbled to 101.09. The enhanced risk sentiment weighed on the dollar as European currencies regained strength and commodity currencies trimmed the heavily incurred losses. The EURUSD rose to $1.0830, the GPBUSD recovered to $1.1873, the AUDUSD rose to $0.5984, and the USDCAD dropped to 1.4206. Meanwhile, the US Treasury yields moved south for the second consecutive day, where the 10-year yields dipped to 1.003%, and the 30-year yields plunged to 1.571%.

Metals

Precious metals raced higher as the dollar drifted lower along with Treasury yields. The price of a gold ounce rose to $1515, the price of a silver ounce advanced to $13, and palladium futures ascended to $1600.

Oil

Oil prices surged as Trump declared that he would intervene to solve the issue between Russia and Saudi Arabia at an “appropriate time”. Earlier this month, Oil benchmarks suffered a sharp drop as the talks of OPEC+ failed to reach an agreement over production cuts to offset the effects of Coronavirus and stabilize the market. Market participants are optimistic about Trump's ability to put an end to the breaking price war. The West Texas Intermediate crude futures rose to $28.20, and Brent futures advanced to $30.68.

Major Economic Events

GMT Country Event Expectation Previous

12:30

CA

Core Retail Sales (MoM) (Jan)

0.2%

0.5%

14:00

US

Existing Home Sales (Feb)

5.50

5.46

17:00

US

U.S. Baker Hughes Oil Rig Count

-

683

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