News

US Stock Futures Slip as Lockdown Looms

Equities

Futures tied to US stock benchmarks had a mixed performance yesterday with the COVID19 spread being a key mover. The soaring numbers of coronavirus cases in the United States imposed risks of having another lockdown. The New York City Mayor warned of deciding on a full shutdown. As per the John Hopkins University, the US deaths of Covid19 crossed 300,000. Since restrictions are back on the headlines, the stay at home stocks did benefit the most. The tech-heavy Nasdaq futures rose to 12543, while the Dow Jones Industrial Average futures declined to 29847, and S&P500 futures fell to 3643.

USD

The dollar index which measures the greenback against a basket of major currencies continued to trade in a tight range, near 90.70, close to its lowest levels since 2018. Market participants are looking forward to the fiscal stimulus talks and whether policymakers will reach a deal to help people and the economy. Also, the Federal Reserve is kicking off a two-day meeting today to review its monetary policy. Meanwhile, European currencies continued to assess the latest developments in Brexit talks. The EURUSD hovered near $1.2150, and the cable resumed upside rally, rising to $1.3345.

Metals

Precious metals inched higher during the past trading hours as investors anticipate a deal on US fiscal stimulus. The price of a gold ounce rallied to $1840, the price of a silver ounce rose to $24.17, and palladium futures recovered to $2325.

Oil

Oil prices continued to trade in a tight range near their highest levels since March. Investors are looking carefully for any decisions on bringing back lockdown measures in Europe and the United States which would hurt oil-demand again. Also, they are assessing the stimulus measures that could offset the impact of covid19 spread. The West Texas Intermediate crude January delivery is trading slightly below $47, and Brent Blend February delivery is holding above $50.

Major Economic Events

GMT Country Event Expectation Previous

14:15

US

Industrial Production (MoM) (Nov)

0.3%

1.1%

21:30

US

API Weekly Crude Oil Stock

-

1.141

 

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