News

US Stock Futures Rebound; Dollar Sinks with Yields

Equities

Major US stock index futures rebounded significantly with Dow Jones and S&P500 putting an end to a three-day losing streak. The drops in the stock market are being seen as a great dip-buying opportunity by investors as the fundamentals on the bigger picture remain the same. Market participants will be looking to more economic data next week, especially the PCE Index, the Fed's favorite inflation gauge, to grasp more insight into the inflation threat. Else, Biden's fiscal stimulus plans remain a good booster to risk-on sentiment. The Dow Jones Industrial Average futures rose to 34182, the S&P500 futures rallied to 4167, and Nasdaq futures raced higher to 13544.

USD

The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 89.70, erasing gains earned on Wednesday, on Fed's taper whisper. The FOMC meeting minutes supported the dollar as it showed that some officials are thinking of tapering. However, if we have a clearer look, the jobs report which disappointed came out after the meeting took place, meaning that their bias could change in this meeting. On the other hand, the Initial Jobless claims rose by only 444 thousand, the lowest since the beginning of the pandemic. The upbeat data failed to support the dollar, the EURUSD rose to $1.2239, the GBPUSD rallied to $1.4200, and the USDJPY dropped to 108.67.

Metals

Precious metals prices hovered in a tight range awaiting some fresh drivers. The rising inflation expectations boosted the demand for gold as an inflationary hedge. Investors will shift their focus to the PCE index next week. The price of a gold ounce is hovering near $1873, the price of silver held steady near $27.65, while palladium drifted lower to $2839.

Oil

Oil prices extended losses amid talks on progress in the negotiations of the nuclear deal between the World's superpowers and Iran. Several officials from both sides declared that progress was made towards setting a draft for a deal, where the US lifts sanctions on Iran. This means more oil supply could be pumped to the markets. The West Texas Intermediate crude July contract fell to $61.83, and the Brent Blend dipped to $64.83.

Major Economic Events

GMT Country Event Expectation Previous

11:00

EZ

 ECB President Lagarde Speaks  

-

-

12:30

CA

 Retail Sales (MoM) (Mar)

2.3%

4.8%

14:00

US

 Existing Home Sales (Apr)

6.09

6.01

 

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