US Stock Futures Plunge on Growing Economic Woes


Major US stock-index futures kicked off the week on a weak note as the soft economic data weighed on the risk sentiment. The recently released economic data came out well-below expectations raising questions over the economic recovery. Meanwhile, the resurgence of Covid19 cases added pressure. The Dow Jones Industrial Average futures dipped to a six-week low of 27132, the S&P500 futures fell to 3267, and the Nasdaq futures tumbled to 10772.


The dollar index, which measures the greenback against a basket of major currencies, edged higher to 93.10 into the European open as the Covid19 developments in the Euro region boosted the dollar on the back of European currencies. The resurgence of Covid19 in European countries is raising concerns over the economic recovery in the region, especially with soft inflation figures. These developments could trigger the European Central Bank to take further actions to support the recovery. The EURUSD declined to $1.1813, the risk-sensitive AUDUSD dropped to $0.7275.


Gold prices continued to trade in a tight range awaiting fresh fundamental drivers. Investors are looking forward to Powell's testimony during this week on the impact of Covid19 on the US economy and the Cares act. The price of a gold ounce eased slightly to $1943, the price of a silver ounce fell to $26.50, and palladium futures hovered around $2370.


Oil prices drifted lower during the first trading hours of the week, affected by the general market sentiment. The risk-off mood is prevailing in the market amid growing woes over the resurgence of Covdi19 and its possible impact on the recovery. The West Texas Intermediate crude November delivery fell to $40.16, and Brent Blend November delivery dropped to $42.09.

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