News

US Stock-Index Futures Extend Gains on Rate Cut Hopes

Equities

Major US stock-index futures extended gains amid growing rate cut hopes. The Federal Open Market Committee opened the door for interest rate cuts to support economic expansion. Wall Street cheered the meeting outcome where the S&P500 futures closed at a record high of 2957 after trading at an intraday high of 2962. The Dow Jones Industrial futures advanced to 26812, and Nasdaq futures climbed to a seven-week high of 7821.

USD

The dollar index, which measures the greenback against a basket of major currencies, finished sharply lower for the second consecutive day settling at 96.63. The dovish outcome of the recent monetary policy of the Federal Reserve weighed on the buck. However, DXY could get some relief today if the European preliminary PMI figures disappoint as it could signal for easing measures by the European Central Bank to support the slowing economy. The common currency account for almost 56% of the dollar index basket. On the other hand, the CME Fed watch tool is pricing in a 100% chance that the Fed will cut in July. The US 10-year yields hovered near the 2% level, and the USDJPY extended losses to 107.49.

Metals

Gold prices extended gains supported by the dovish monetary policy stance from top central banks. During the Asian session, the price of a gold ounce climbed to $1411, the highest since September 2013. The price of a silver ounce rose to a three-month high of $15.54, while palladium tumbled to $1480.

Oil

Oil prices rose amid escalating geopolitical tension and growing hopes for rate cuts. The latest incident in the Persian Gulf took the US-Iran clash to a new level, where there are talks about President Donald Trump approving a strike on Iranian military targets and then pulling back. On the other hand, the dovish tone of the Federal Reserve and chances of monetary policy easing would have a positive impact on the global economic outlook and boost the demand for oil. The West Texas Intermediate crude futures climbed to a three-week high of $57.75, and Brent futures rallied to a high of $65.00.

Major Economic Events

GMT Country Event Expectation Previous

7:30

EU

German Manufacturing PMI (Jun) 

44.6

44.3

7:30

EU

German Services PMI (Jun)  

55.3

55.4

8:00

EU

Manufacturing PMI (Jun)  

48.0

47.7

8:00

EU

Services PMI (Jun)

53.0

52.9

12:30

CA

Core Retail Sales (MoM) (Apr)

0.6%

1.7%

13:45

US

Manufacturing PMI (Jun) 

50.5

50.5

13:45

US

Services PMI (Jun) 

51

50.9

14:00

US

Existing Home Sales (May)

5.29

5.19

17:00

US

U.S. Baker Hughes Oil Rig Count

 

788

 
Disclaimer
 

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