News

Trump’s Discharge and Stimulus Hopes Drive Stock Futures Higher

Equities

US stock benchmarks raced higher during the first trading sessions of the week amid optimism over Trump's health status and hopes of further fiscal stimulus. Trump left Walter Reed National Military Medical Center on Monday night, back to the White House, where he will continue his coronavirus treatment. Doctors affirmed that Trump's conditions continued to improve, but "he isn't out of the woods yet." On the other hand, investors are awaiting fresh insight on the next relief package talks. The House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussed the prospects of a stimulus package on Monday, failed to reach an agreement, but planned to continue talks today. The Dow Jones Industrial Average futures rallied to a three-week high of 28087, the S&P500 futures rose to 3398, and Nasdaq futures advanced to 11484.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, extended losses falling to 93.35, weighed down by enhanced risk appetite. The optimism over Trump's health and the efforts made to reach a new deal over a new relief package boosted risk sentiment. On the other hand, market participants are looking forward to Powell's comments on the economic outlook at the National Association of Business Economics annual meeting. The EURUSD added to prior gains rising to $1.1798, and the GBPUSD edged higher to $1.3001.

AUD

The Reserve Bank of Australia concluded its monetary policy meeting by keeping policy settings unchanged. The bank reiterated that interest rates are not going to rise before making progress towards full employment and healthy inflation, and affirmed that additional monetary easing could support job creation. Also, market participants are looking forward to the annual budget release today. The AUDUSD hovered above $0.7150, awaiting further input.

Metals

Precious metals prices edged higher as the dollar fell on stimulus hopes. The price of a gold ounce rose to $1914, the price of a silver ounce hovered near $24.40, and palladium futures raced higher to $2384.

Oil

Oil prices raced higher on bolstered risk sentiment. The prospects of further stimulus eased investors woes over the economic activity. The West Texas Intermediate crude November delivery rose to $39.59, and Brent Blend December delivery raced higher to $41.68. Market participants will be monitoring inventory reports from the American Petroleum Institute and the US Energy Information Administration.

Major Economic Events

GMT Country Event Expectation Previous
8:35 EZ ECB President Lagarde Speaks   - -
12:30 US Trade Balance (Aug) -66.20 -63.60
13:00 EZ ECB President Lagarde Speaks  - -
14:00 US  JOLTs Job Openings (Aug) 6.685 6.618
14:40 US Fed Chair Powell Speaks  - -
20:30 US  API Weekly Crude Oil Stock - -0.831
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