US open Tech to lead the gains oil supported by Suez Canal blockage

US futures

Dow futures +0.3% at 32582

S&P futures +0.4% at 3926

Nasdaq futures +0.7% at 13108

In Europe

FTSE -0.3% at 6681

Dax -0.75% at 14575

Euro Stoxx -0.1% at 3825

Learn more about trading indices

Stocks point higher, tech to outperform

US futures are pointing to a stronger start with tech set to outperform. All three main US indices are pointing higher rebounding from yesterday’s lower close as investors gear up for another appearance from Fed Chair Powell & Janet Yellen.

Yields have pared back to 1.62%, significantly down from last week’s 1.75% boosting demand for tech stocks which had come under pressure as yields rise. Yields have eased as Jerome Powell remains firmly dovish and as rising covid cases in Europe, Brazil and India raise questions over the global economic recovery.

Stocks in focus

Disney & AMC Entertainment (-4%) after Disney announced that it will push back the release of its latest Marvel movie Black Widow to July. Furthermore, it will release simultaneously on its streaming platform for a fee and at the theatres. The decision reflects the fact that the public might not yet be ready to embrace large gatherings. The news comes just after AMC started reopening its theatres.

Tesla trades +1% pre-market after CEO Elon Musk announced that Tesla will now accept Bitcoin as payment. Details on pricing policy have been light, but the announcement boosted Bitcoin by 5%.

Intel – trades +4.8% pre-market after announcing plans to expand significantly its advanced chip manufacturing capacity by spending as much as $20 billion to build 2 factories in Arizona.

Where next for Intel share price?

Intel’s share price has been rising since hitting a $44.00 low in November. It trades above its 20 & 50 sma on the daily chart marking an establish bullish trend.

The RSI is also supportive of further upside and technical bullish.

The share price has struggled to push beyond resistance at $66 the yearly high, which capped the price last week. A close over this level could bring $68 the 2020 high into focus.

On the flip-side, support can be seen at $62.50 the 20 sma, a move below here could open the doo to $60 round number and 50 sma.

GameStop misses

GameStop reported disappointing quarterly numbers will revenue coming in 3.3% lower whilst EPS missed forecasts by 8%. However, it wasn’t all bad news with comparable store sales rising 6.5% whilst digital sales surged 175% boosting the argument for its reinvention as an online only retailer.

GameStop’s reinvention will be in the hands of Jenna Owens previously at Amazon & Google & Neda Pacifico previously at Chewy.

Jefferies have turned bullish on the stock hiking its target price from $15 to $175.

Impressive PMIs in Europe, Fed Powell, durable goods & PMIs to come

PMIs in Europe showed that business activity accelerated in March, beating forecasts by a significant margin. However, the upbeat data failed to boost the mood in Europe where rising covid and tighter lockdown restrictions have raised concerns over a rapid recovery.

Looking ahead, Fed Chair Powell & Janet Yell will appear for a second time before Congress. Yesterday, Powell stuck to the dovish hymn sheet whilst Yellen talked tax hikes to plug the budget deficit.

In addition to durable goods, US PMIs for both manufacturing and service sector will be realease. Both are expected to show strong expansion.

FX – GBP extends losses on weak CPI data

The US Dollar is advancing on safe haven flows as covid cases rise in Europe and on the possibility of US tax hikes.

GBP/USD – is under-performing peers after weaker than forecast CPI data. UK CPI rose 0.1% MoM in February. This was up from January’s -0.2% decline but still short of the 0.5% forecast. Annually, inflation rose 0.4%, well down from 0.7% in January and 50% below the 0.8% reading expected.

Investors await Fed Chair Powell’s testimony before congress together with US treasury secretary Janet Yellen.

GBP/USD -0.3% at 1.3714

EUR/USD trades -0.1% at 1.1834

Suez blockages aids oil’s recovery

After tanking over 6% lower in the previous session oil prices are on the rise, clawing back some of those losses. Both benchmarks, WTI crude and Brent have fallen around 14% from recent highs into correction territory.

Rising covid cases and tighter lockdown restrictions in Europe raised fears over future demand panicking the oil markets. The selloff pulled both benchmarks into oversold territory, so today’s rebound isn’t so surprising.

On the data front, crude stockpiles rose by 2.9 million barrels against an expected decline of 300,000 barrels. Attention will now turn to the EIA stockpiles data due later today.

It is also worth keeping an eye on the blockage in the Suez Canal, a route used to move oil. Failure to clear the path quickly could offer near term support to oil prices.

US crude trades +2.5% at $59.16

Brent trades +2.2% at $62.23

Learn more about trading oil here.

The complete guide to trading oil markets

Looking ahead

13:45 Manufacturing PMI

13:45 Service sector PMI

14:00 Powell & Yellen testify

14:30 EIA crude oil stockpiles

15:00 EUR Consumer confidence

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

FOREX.com is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment and CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.forex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.forex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 42.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

Delayed London Stock Exchange (LSE) Data

The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.