US open: Futures point to a mixed start amid inflation caution

US stocks are heading for a mixed start in what is expected to be a quiet session. Caution dominates ahead of Thursday's CPI reading.

USA (2)

US futures

Dow futures -0.02% at 34610

S&P futures +0.2% at 4236

Nasdaq futures +0.66% at 13890

In Europe

FTSE +0.3% at 7103

Dax +0.03% at 15694

Euro Stoxx +0.3% at 4110

Learn more about trading indices

Stocks mixed after Fastly outage, CPI in focus

US futures are set for a mixed start in what is expected to be a subdued session. Investors remain firmly fixated on Thursday’s inflation data. After the Goldilocks jobs report on Friday, the rally has faded and concerns are starting to creep in over where inflation might be heading and what the Fed may do about it.

The tight trading ranges seen so far this month reflect the cautious mood in the market ahead of the inflation numbers. CPI is expected to continue climbing to 4.7% MoM in May.

Such as elevated figure will test the Fed’s resolve. Whilst the Fed reassure that this spike in inflation is temporary, policy makers will need to be out in their droves to calm the market. Delaying action or even inaction could cause economic disruption that the markets fear.

In corporate news Fastly will be in the spotlight after experiencing technical issues which are suspected to be behind an outage hitting global news websites such as FT, Bloomberg and the New York Times.


Where next for the Dow Jones?

The Dow Jones closed 0.3% lower on Monday and the futures are trading a few ticks lower today. However, the broad uptrend remains intact, with the index trading above its ascending trendline dating back to early May, on the 4 hour chart.  The overnight swing low found support on the trendline at 34450. Although a move below 34200 is needed to negate the near-term uptrend. On the upside, buyers could target 34850 the June high, before 35000 comes back into sight.


FX – USD edges higher, EUR digests mixed bag of data

The US Dollar advancing in quiet trade as it recovers from a two-day selloff following the weaker than expected non-farm payroll report. The softer number took some pressure off the Fed to taper support. Attention is now on Thursday’s CPI reading which could fuel bets of a sooner move by the Fed.

EUR/USD trades range bound as investors digest a mixed bag on the data front. Eurozone Q1 GDP was upwardly revised contracting -0.3% in the first three months of the year, less than the -0.6% from the second reading. However, German industrial production also unexpectedly declined 1% in April, down from 2.2% increase in March but well short of the 0.5% rise forecast.

GBP/USD-0.2% at 1.4145

EUR/USD  -0.1% at 1.2178


Oil eases on demand concerns

Oil prices are extending losses for a second straight session as investors remain caught up on demand outlook concerns. Data yesterday revealed that Chinese oil imports dropped -14.6% YoY in May, to a 5 month low unnerving the markets.

Both benchmarks are trading around 1% lower, although the longer term bullish uptrend remains intact. Oil prices have rallied over 40% this year on expectations of strong demand in the second half of the year.

API crude stockpile data is due later.

US crude trades -0.1% at $68.51

Brent trades -0.1% at $70.72

Learn more about trading oil here.

The complete guide to trading oil markets


Looking ahead

15:00 JOLTS job openings

21:30 API Crude Oil Stockpile Data


How to trade with FOREX.com

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

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


More from Indices

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.