US open: Stocks set for a mixed open, oil rises on pipeline attack
Fiona Cincotta May 10, 2021 12:43 PM
US futures trade mixed. The tech heavy Nasdaq slips whilst the Dow & S&P 500 build on Friday's record highs. Commodities are roaring higher on re-openinig optimism & weaker USD. Oil rises after US pipeline cyber attack.
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
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.