US open: Futures edge lower after long weekend
Fiona Cincotta September 7, 2021 1:20 PM
US stocks are set for a slightly softer start, easing off record highs following the extended weekend break. Upbeat Chinese & EU GDP revision could limit losses.
Dow futures -0.13% at 35410
S&P futures -0.18% at 4539
Nasdaq futures -0.33% at 15652
FTSE -0.2% at 7173
Dax +0.15% at 15907
Euro Stoxx -0.12% at 4240
Futures ease off record highs
On the first day back after the extended holiday weekend US stocks are set for mildly softer open, off recent highs following the weaker than forecast US non farm payroll but still broadly supported following an upwardly revised GDP reading from Europe and stronger than forecast Chinese trade data.
Chine exports and imports grew faster than expected in August easing fears surrounding a slowing of momentum in the economic recovery and over supply bottlenecks.
Meanwhile Eurozone GDP was revised higher to 2.2% QoQ, up from 2%, which rather than sparking gains on indices across Europe instead raised concerns that support could soon by tapered.
Last week’s NFP reported prompted speculation that the Fed could delay winding in its bond purchases. However, in the same breath the meagre 253k jobs added also raised concerns over the health of the US labor market recovery.
Where next for Nasdaq?
The Nasdaq has been trading in a reining channel pattern since late September. The share price trades around all time highs of 15700. Bearish RSI divergence suggests that momentum is slowing. It would take a move below 15190 horizontal support and 15100 the 50 sma for the near-term uptrend to be negated. It would take a move below 14725 for sellers to gain traction.
FX – USD extends rebound, AUD drops post RBA
The US Dollar is extending gains for a second straight session although continues to trade around monthly lows. The US Dollar lost ground following a more dovish than expected tone from Fed Chair Jerome Powell at the Jackson Hole Summit. The weaker than expected NFP fueled further losses.
AUDUSD is underperforming following the RBA meeting overnight. The RBA announced that it will continue to wind down its bond purchases from A$5 to A$4. However, the market focused on the extension of the programme which will be pushed out o mid-February from mid-November.
AUD/USD -0.5% at 0.7404
GBP/USD -0.42% at 1.3771
EUR/USD -0.09% at 1.1859
Oil searching for direction
Oil is struggling to find direction caught between upbeat data from China and concerns over Saudi Arabia’s sharp price cuts in crude oil prices for Asia.
Deep cuts from Saudi Arabia on Monday and a strengthening USD have dragged on demand, meanwhile strong economic data from China has helped to balance the mood. China’s exports grew at a stronger pace thanks to robust global demand. The data is a welcomed surprise after concerns were rising over the loss of momentum to China’s economic recovery. Chinese crude imports rose 8% in August from a month earlier.
US crude trades -0.50% at $68.39
Brent trades -0.25% at $71.77
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.