News

US Stock Futures Kick-off The Week on Stronger Note; Dollar on Defensive

Equities

Major US stock-index futures started the week with significant gains as investors' optimism over the economic recovery grew following the US jobs figures. The data showed that the US economy created around 4.8 million jobs, signaling a sharp rebound in the labor market. However, the fears of another lockdown due to rising coronavirus cases are still weighing on investors' risk sentiment. The Dow Jones Industrial Average futures rose to 26193, the S&P500 futures rallied to 3171, and Nasdaq futures advanced to another record high of 10503.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, dipped to 96.82 as investors' favored riskier currencies. After the strong job data, market participants are awaiting the ISM non-manufacturing PMI, which will be published later today, to grasp further hints into the US economic recovery. The EURUSD rose to $1.1302, the GBPUSD inched higher to $1.2510, and the risk-sensitive AUDUSD advanced to a four-week high of $0.6982.

Metals

Gold prices continued to trade in a tight range near an eight-year peak awaiting fresh fundamental drivers. The mounting coronavirus cases are supporting the demand for the safe-haven metal. The price of a gold ounce hovered around $1775, the price of a silver ounce edged higher to $18.12, and palladium futures held steady near $1940.

Oil

Oil prices rose slightly amid hopes of rapid and solid economic recovery, but surging COVID19 cases capped gains. The economic indicators from top economies around the world are showing an improvement in economic activity. However, the soaring coronavirus cases are imposing risks of having another disruption to the economic activity. The West Texas Intermediate crude August delivery rose to $41.06, and Brent blend September delivery rallied to $43.68.

Major Economic Events

GMT Country Event Expectation Previous

8:30

UK

 Construction PMI (Jun)

47

28.9

9:00

EZ

 Retail Sales (MoM) (May)

15.0%

-11.7%

14:00

US

 ISM Non-Manufacturing PMI (Jun)

50.0

45.4

Disclaimer

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