News

US Stock Futures Tick Higher to Trim Yesterday’s losses

Equities

Major US stock index futures inched higher to trim yesterday's losses. The stock benchmarks kicked off the week on a strong note boosted by positive data from Moderna concerning a possible vaccine. However, the mounting US-China tensions and report raising concerns over Moderna's announcement drove the market lower. Stock futures managed to rally higher during the Asian session, supported by the broader picture of things coming back to normal. The Dow Jones Industrial Average futures rose to 24394, the S&P500 futures edged higher to 2495, and Nasdaq futures climbed to 9380. In their testimony before the banking senate committee, Fed's Powell and Treasury Secretary Mnuchin expressed their commitment to do whatever it takes to defend the US economy.

USD

The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 99.73 as investors held riskier currencies. The Euro was among the top performers against the US dollar, as France and Germany suggested a common fund that would move the Eurozone closer towards fiscal union. They proposed a 500 billion Euro recovery fund offer grants to countries and sectors hit hard by the pandemic and allow the European Commission to borrow on behalf of the union. On the other hand, the Federal Reserve and US Treasury affirmed their readiness to do whatever it takes to help the US economy get back on the right track. The EURUSD rose to $1.0959, the GBPUSD hovered around $1.2250, and the AUDUSD held steady near $0.6550.

Gold

Gold prices pushed higher as Powell and Mnuchin stated that more work should be done, raising the prospects of further stimulus. On the other hand, the US-China tensions are supporting the flow towards safe assets. The price of a gold ounce ascended to $1753, the price of a silver ounce rallied to $17.57, and palladium futures extended upside rally to trade at a one-month high of $2152.

Oil

Oil prices were almost steady amid hopes of a recovery in demand levels as the top economies reopen. Moreover, the American Petroleum Institute reported a decline of 4.8 million barrels in US crude oil stock last week. Market participants are waiting for the official numbers by the US Energy Information Administration later today. The West Texas Intermediate crude July delivery hovered around $32, and Brent Blend July delivery held steady above $34.50.

Major Economic Events

GMT Country Event Expectation Previous

9:00

EZ

 CPI (MoM) (Apr)

0.3%

0.5%

12:30

CA

 CPI (MoM) (Apr)

-0.6%

-0.6%

13:30

UK

BOE Gov Bailey Speaks

-

-

14:00

EZ

 Consumer Confidence (May)

-23.4

-22.7

14:30

US

Crude Oil Inventories

4.147

-0.745

18:00

US

 FOMC Meeting Minutes 

-

-

23:50

JP

 Trade Balance (Apr)

-560.0

5.4

 Disclaimer 

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