News

US Stock Futures Hold Gains, Dollar Steady

Equities

Major US stock-index futures held gains earned post the jobs report. Wall Street rallied sharply on Friday, on astonishingly strong jobs figures. The report claimed that the US economy created over 2 million jobs in May, and the unemployment rate declined. The report raised the prospects of fast economic recovery and boosted risk appetite. The Dow Jones Industrial Average futures rose to 27323, the S&P500 futures rallied to 3209, and Nasdaq futures advanced to a record high of 9874.

USD

The dollar index, which measures the greenback against a basket of major currencies, snapped its eight-day losing streak, rising to 96.98 post surprisingly strong job figures. The jobs report showed that the US economy created 2.509 million jobs in May, where economists expected the economy to have lost around 8 million jobs. Moreover, the US unemployment rate fell to 13.3% from 14.7% in May. However, there had been a note stating that there was a "misclassification error", meaning that the unemployment rate is higher than reported. Market participants are optimistic about the numbers, especially that they signal that things are coming back to normal.

Metals

Precious metals trimmed part of the losses incurred on Friday, where the price of a gold ounce recovered to $1696, the price of a silver ounce rose to $17.69, and palladium futures held steady near $1950.

Oil

Oil prices extended upside rally as OPEC+ agreed to extend production cuts for one month. Top oil producers agreed to cut 9.7 million barrels for two months starting May to stabilize the market. On Saturday, they extended the historic output cuts till the end of July, but the cuts will total 9.6 million as Mexico remained committed to the prior agreement. On the other hand, oil prices are getting a lift from the reopening of business and prospects of better demand. The West Texas Intermediate July delivery rose to a three-month high of $40.42, and Brent Blend August delivery advanced to $43.31.

Major Economic Events

GMT Country Event Expectation Previous

12:15

CA

Housing Starts (May)

150.0

166.4

13:45

EZ

 ECB President Lagarde Speaks 

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