US open: Wall Street points higher as infrastructure package advances
Fiona Cincotta August 2, 2021 2:15 PM
US futures look set to extend gains as infrastructure stimulus bill advances in the Senate. A dovish Fed and upbeat corporate earnings add to the positive mood ahead of US ISM manufacturing PMI.
Dow futures +0.2% at 35022
S&P futures +0.35% at 4412
Nasdaq futures +0.45% at 15036
FTSE +0.6% at 7077
Dax +0.15% at 15584
Euro Stoxx +0.6% at 4117
Futures tick higher as Senate agrees infrastructure bill draft
US futures are set to start higher continuing the recent upbeat tone amid broadly strong corporate earnings and a dovish Fed. Risk appetite is also being boosted by a US infrastructure bill as Senators introduce a $1 billion spending plan, potentially adding yet more stimulus to the economy. There is a chance though that this will get held up in the House of Representatives as Speaker Nancy Pelosi has tied it to a separate $3.5 trillion spending package to fight poverty and climate change.
Attention will now turn to the US ISM PMI which is expected to tick higher to 60.9 in July, up from 60.6. The data comes after a cool down in factory growth in China. The Caixin manufacturing PMI fell to 50.3 its lowest level since April. At the same time virus concerns are also ticking higher in China, although data remains scarce.
Where next for the Nasdaq?
The Nasdaq trades within an ascending channel dating back to September last year. The index trades just off records highs of 15140 reached last week. The RSI is supportive of further upside whilst it remains out of overbought territory. A move above 15140 could see the price aim for the upper band trendline projection at around 15350 and fresh all time highs. On the flip side there is plenty of support with 50 sma seen at 14385 and horizontal support at 14100.
FX – USD extends losses, EUR rises on upbeat data
The US Dollar is trending lower, extending losses from the previous week. The greenback experienced its worst weekly performance last week since May after the Fed reiterated that it Was in no hurry to tighten monetary policy. Attention will now turn to ISM manufacturing data ahead of the non farm payroll report on Friday.
EUR/USD trades just shy of 1.19, boosted by upbeat German retail sales data came in ahead of forecast at 4.2% MoM vs 2% estimated. Manufacturing PMIs for both Germany and the Eurozone was also upwardly revised to 65.9 and 62.8 respectively.
GBP/USD -0.11% at 1.3890
EUR/USD +0.12% at 1.1885
Oil pressurized on Chinese growth concerns
Oil is trading under pressure as concerns over the health of China’s economic recovery resurfaced. The latest PMI survey revealed that factory growth in the world’s second largest oil consumer slowed sharply. Oil market nerves were compounded further by higher output from OPEC producers.
OPEC output rose to the highest level in July since April 2020.
US crude trades -1.5% at $72.45
Brent trades +1.3% at $74.20
14:45 Markit Manufacturing PMI
15:00 ISM Manufacturing PMI
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
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.