Dow futures +0.34% at 34889
S&P futures +0.06% at 4234
Nasdaq futures -0.4% at 13657
FTSE +0.1% at 7134
Dax +0.01% at 15382
Euro Stoxx -0.24% at 4021
Fresh highs for S&P & Dow
US futures point to a mixed start on Monday as commodity prices surge and after a cyber attack on the largest US gasoline.
The Dow Jones & the S&P500 both closed at record highs on Friday after the unexpectedly weak non farm payroll numbers. With just 266k new jobs created versus 1 million expected, the data supported the Fed’ s dovish stance. The prospect of low rates for longer boosted stocks across the board on Friday.
Today, the tech heavy Nasdaq is set to open lower despite impressive results for big tech across earning season.
The reopening play is revealing itself in the commodity space which is helping cyclicals and energy stocks push higher.
Copper trades at an all time high.
There is no high impacting US data due for release today. Investors will look ahead to Wednesday’s CPI release to further gauge the Fed’s next move.
This week sees the pace of earnings ease slightly. Today the stocks in focus will include the recently IPO’d Roblox in addition to Marriott International.
FX – GBP rallies on weak USD & post UK elections
The US Dollar is trading lower as investors continue to digest the shockingly weak US jobs report.
GBP/USD is outperforming its peers, piercing 1.41, after UK local election result and the weak US jobs report. The Scottish Nationalist Party won the regional elections in Scotland but failed to secure a majority. The party will continue to push for another independence referendum but without an absolute majority and with PM Boris Johnson saying no the Pound is breathing a sigh of relief.
Re-opening optimism is also lifting the Pound. Boris Johnson is set to announce the next step in easing lockdown restrictions.
GBP/USD +0.9% at 1.4109
EUR/USD +0.01% at 1.2163
Oil extends gains on pipeline attack
Oil is edging higher, building on gains from the previous week after a cyber attack on a top US pipeline. The Colonial Pipeline which serves half of the East Coast said that its main lines were still out of commission despite efforts to bring them back.
The US government is using emergency powers to aid the process and provide fuel supplies to the market.
This should be a short term disruption; the oil markets are reacting calmly so far. The longer that it takes to normalize production the more nervous the market will become.
The weaker US Dollar is also supporting oil prices, making it cheaper for buyers with other currencies.
Whilst the reopening in the West continues to support the oil demand outlook, elevated case numbers in India and Japan continue to act as a drag.
US crude trades +0.6% at $65.30
Brent trades +0.7% at $68.70
02:30 China CPI April