Dow futures +0.8% at 31200
S&P futures +0.95% at 3882
Nasdaq futures +1.13% at 11987
FTSE +1.5% at 7140
Dax +2% at 12597
Euro Stoxx +1.55% at 3418
US stocks are pointing to a firmer start adding to gains in the previous session, as investors continue to weigh up the prospect of more aggressive monetary policy and the impact that this could have on growth.
Recession fears have picked up again this week with the US 2-year and 10-year treasury yields inverting, a traditional recession warning bell. Of the 28 inversions of the 2/10 yield curve over the past century, 22 have resulted in a recession.
Recession fears have helped pull commodities sharply however over the past month, with the Bloomberg commodities index down 20% since the June peak. Weak commodity prices help ease inflation fears.
However, commodities are on the rise again on news that China is considering a $200 billion stimulus programmme. The stimulus would be aimed at helping it shake off its ongoing real estate crisis and revive consumer demand after COVID lockdowns. Copper, also another indicator for the health of the global economy is on the rise, heading for its best day in 9 years.
On the data front, a rise is US jobless claims to 235k, around a 6-month high, has been broadly brushed off by the market and comes following JOLTS vacancies data yesterday which showed that there are still nearly 2 vacancies for every unemployed worker.
Fed speakers Waller and Bullard are due to speak later.
In corporate news:
GameStop rises 9% on the open after announcing a stock split. The board approved a 4 for 1 split which would make the stock more affordable for retail investors.
FX markets – USD falls, EUR edges lower
USD is edging lower after several sessions of strong gains. The upbeat mood in the market is helping draw safe-haven flows out of the greenback.
EURUSD is edging higher but remains broadly steady after a steep selloff in the previous few sessions. Concerns over energy security and the ECB arriving late to the rate hiking party have dragged on the common currently
GBP/USD is rising despite UK prime minister Boris Johnson resigning. The move paves the way for a leadership battle,, with issues such as Brexit and the cost of living crisis in focus.
GBP/USD +0.4% at 1.1950
EUR/USD +0.05% at 1.02
Oil rises after steep falls
Oil prices jumped after steep falls earlier in the week. News of a huge stimulus drive in China has helped lift commodities across the board.
Oil prices have fallen across the week as recession fears hurt the demand outlook and prices fell lower back below $100.
Looking ahead, the EIA crude oil inventory data is due to be released.
WTI crude trades +4% at $103.07
Brent trades +4% at $103.10
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.