News

US Stock Futures Soar as Vaccine Hopes Lift Risk Appetite

Equities

Major US stock index futures extended upside rally on hopes of reaching a vaccine that would put an end to this Covid19 pandemic. Moderna, an American biotechnology company, working on developing a vaccine, reported positive data on the early-stage vaccine trial. Moreover, the company reported that it would launch the final testing stage in July. According to the World Health Organization, more than 100 vaccines are under development globally. Top central bankers around the world linked robust recovery to reaching a vaccine. Therefore, such headlines would boost investors' risk appetite. The Dow Jones Industrial Average futures rose to 24765, the S&P500 futures rallied to 2975, and Nasdaq climbed to 9415. Market participants are looking forward to the testimony of Powell and Mnuchin before the Senate Committee on the response to covid19. Powell is widely expected to express the commitment of the Federal Reserve to provide the needed support to the US economy.

USD

The dollar index, which measures the greenback against a basket of major currencies, plunged sharply to a one-week low of 99.38 as vaccine hopes enhanced risk sentiment. Lately, the dollar was gaining ground against rivals from its safe-haven status. However, the Moderna report on the vaccine raised the demand for riskier currencies. Today, Market participants will focus carefully on Powell's testimony to grasp further insight into the future path of interest rates. The EURUSD edged higher to $1.0944, the GBPUSD recovered to $1.2267, and the AUDUSD soared to $0.6563.

Gold

Gold prices eased amid improved risk sentiment. The price of a gold ounce faltered at $1765, its highest level since late 2012, and declined to $1726. Meanwhile, the price of a silver ounce held partial gains trading at $17.05, and palladium futures surged to $2082.

Oil

Oil prices fell slightly on profit-taking following a strong upside rally since late April. The West Texas Intermediate crude July delivery declined to $31.12, and Brent blend July delivery dropped to $34.41. Market participants are looking forward to the weekly crude oil stock by the American Petroleum Institute and the official numbers tomorrow by the US Energy Information Administration.

Major Economic Events

GMT Country Event Expectation Previous

9:00

EZ

 German ZEW Economic Sentiment (May)

33.5

28.2

12:30

US

 Building Permits (Apr)

1.000

1.350

12:30

US

 Housing Starts (Apr)

0.950

1.216

14:00

US

 Fed Chair Powell Testifies 

-

-

20:30

US

 API Weekly Crude Oil Stock

-

7.58

 Disclaimer 

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