US open: Wall Street opens higher as inflation concerns ease

US futures

Dow futures +0.1% at 35968

S&P futures +0.23% at 4701

Nasdaq futures +0.46% at 16393

In Europe

FTSE -0.14% at 7277

Dax -0.05% at 16244

Euro Stoxx +0.02% at 4401

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Corporate updates impress

US stocks are set for a firmer start to trading after a weaker close in the previous session. Concerns over inflation pulled stocks lower in a data quiet session on Wednesday. Today fresh record highs in Europe have helped set an upbeat tone to trading.

Falling treasury yields are aiding the rotation into high growth stocks with the Nasdaq set to outperform cyclicals. Impressive results from Nvidia add to the upbeat mood.

Nvidia wasn't the only company to impress, with retailers Kohl's and Macy's raising sales and earnings forecasts.

Oil related shares have traded lower across Europe, a trend which is likely to be repeated across the US session as oil prices tumble.

Jobless claims came in marginally higher than the previous week at 268k, up from 267k and slightly missing forecasts of 260k. Whilst the Fed has emphasized its focus on jobs, the data was uninspiring with markets looking past the numbers.

Attention now turns to Fed speakers who could offer some insight into the timing of the next move by the Fed. Although it is worth noting that the Fed chair announcement is potentially coming in the next few days. Powell remains the betting market’s favourite at 70% whilst the odds for the more dovish leaning Brainard sit at 30%.

Where next for the Nasdaq?

The Nasdaq trades within a steep ascending channel as it extends its recover from the October 5 low. The RSI is just tipping into overbought territory so some consolidation could be on the cards. Buyers will be looking for a move over 16459 for fresh all-time highs. Whilst it would take a move below 15900 to negate the near time bull trend opening the door to support at 15675 the September high. A move below 15475 the 50 sma could see more sellers climb in.

FX – USD eases back from 16 month high

The USD falling away from its 167 month high reached earlier in the week as investors look towards Fed speakers later today for fresh clues over the timing of the next move by the Fed.

USD/TRY rises to a record high after the Turkish central bank cut interest rates again by 100 basis points after slashing rates by 300 points in recent months. The central bank is acting on calls by President  Tayyip Erdogan for cheaper borrowing costs.

 

Oil set for weekly decline

Oil prices are trading sharply lower extending losses for the third straight session and trades at a six-week low. Oil is set to drop just shy of 5% so far this week adding to losses earlier in the month and putting oil on track for its weakest month in over a year.

The move by Biden to ask China and other major oil consuming countries to release strategic oil reserves in a bid to lower energy prices and erase inflationary pressure. So far OPEC+ are sticking to raising oil output by 400,000 barrels per day an agreement reached in July warning of a possible supply glut next year.

WTI crude trades -0.6% at $77.03

Brent trades -0.4% at $79.30

Learn more about trading oil here.

 

Looking ahead

14:30 Fed Williams speaks

15:30 ECB Lane speaks

19:00 Fed Evans speaks

23:30 Japanese CPI