US open Wall Street opens mixed as virus concerns linger

US futures

Dow futures -0.24% at 35119

S&P futures -0.1% at 4431

Nasdaq futures +0.05% at 15119

In Europe

FTSE -0.07% at 7120

Dax -0.2% at 15727

Euro Stoxx +0.3% at 4173

Jobs data and covid cases in focus

US stocks are trading mildly lower on the open but remain close to all time highs as investors continue to digest Friday’s impressive jobs report and concerns grow over the spread of the delta variant COVID variant, particularly in China and the US.

Virus fears are predominantly being played out in the oil market, but that naturally leads to oil majors coming under pressure. Firms such as ChevroN, Exxon Mobile and Halliburton traded under pressure.

Stocks are being under pinned by a strong earnings season which saw a record number of companies beat on earnings. Whilst comparisons will last year were broadly flattering, guidance has also been strong boding well for the bull market to continue.

Today there is little in the way of fresh data to drive trading, investors will look ahead to the release of CPI data on Wednesday for further clues as to whether the Fed is likely to make an announcement on tapering support at the Jackson Hole economic forum later this month.

Where next for the Dow Jones?

The Dow Jones closed at a new record high on Friday after breaking through resistance at 34760 – 35000. The price is consolidating gains today between 35000 and the new all time high at 35250. It worth noting the RSI bearish divergence in play since late April which often suggests that momentum is slowing. It would take a move below 34760 for sellers to gain traction.

FX – USD consolidates gains, EUR shrugs off decline in confidence

Broadly speaking the FX markets are quiet today after a volatile end to last week.

USD is consolidating gains from Friday. The greenback trades flat after booking strong gains on Friday following the better than forecast NFP. The all-round strong report boosted bets that the Fed could taper bond purchases sooner rather than later.

EUR/USD has trades roughly flat even as Sentix investor confidence drops sharply in August. The index dropped to 22.2, down from 29.2 in July, whilst marking the third straight month of declines. Concerns over more lockdown restrictions in the Autumn are unnerving investors.

GBP/USD +0.02% at 1.3875

EUR/USD +0.02% at 1.1760

Oil skids a further 4% lower

Oil prices are tumbling lower at the start of the week. After falling over 7% last week, both oil benchmarks are down over 4% at the start of the week. Chinese covid restrictions and a dire UN climate warning have sent oil sliding.

Demand expectations are once again taking a hit after China imposes travel curbs in 46 cities amid the spread of delta COVID. The second largest oil consumer is seeing covid cases rise quickly which is becoming an important factor in the clouding of the oil demand outlook.

The UN gave a dire warning over climate change as global warming nears its limit.

US crude trades -3.7% at $6561

Brent trades -3.6% at $6803

Looking ahead

No major releases

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

Open a Forex.com account, or log-in if you’re already a customer.
Search for the market you want to trade in our award-winning platform.
Choose your position and size, and your stop and limit levels.
Place the trade.

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.