US Futures falling, watch AMZN, GRUB, DAL, REGN

The S&P 500 Futures are on the downside after the Federal Reserve hinted at keeping interest rates near zero through 2022.

FOREX 8

The S&P 500 Futures  are on the downside after the Federal Reserve hinted at keeping interest rates near zero through 2022. At the same time, the central bank said it expects the U.S. economy to contract by 6.5% this year and rebound 5.0% in 2021.

Later today Producer Price Index (+0.1% on month in May expected), Initial Jobless Claims (a fall to 1.550 million expected) and Continuing Claims (a fall to 20.000 million expected) will be published.

European indices are under pressure. In the U.K., the RICS index measuring house prices came out at -32% in May, against -24% expected and -22% the previous month (revised from -21%).

Asian indices closed deeply in the red. This morning, government data showed that Japan's first quarter BSI All Industry Business Condition Index for large firms sank to -47.6 (-38.4 expected) from -10.1 in the prior quarter. Official data showed that China's M2 money supply rose 11.1% on year in May (+11.3% expected), while new yuan loans totaled 1,480 billion yuan (1,600 billion yuan expected).

WTI Crude Oil Futures are falling. U.S. Energy Information Administration's weekly has reported that the country's crude-oil stockpiles rose to a record level of 538.1 million barrels.

Gold is edging lower on profit taking following a bounce after the Fed decision. Gold fell 12.21 dollars (-0.7%) to 1726.49 dollars.

The US dollar gains ground on falling equities. EUR/USD fell 16pips to 1.1358. GBP/USD dropped 88pips to 1.2659 on Brexit concerns.

US Equity Snapshot

 

Amazon.com (AMZN): the European Union plans to issue formal antitrust charges against the e-commerce giant, according to Dow Jones Newswires.

Grubhub (GRUB) and Just Eat Takeaway.com have entered into a definitive agreement whereby Just Eat Takeaway.com is to acquire 100% of the shares of Grubhub in an all-stock transaction "to create a leading global online food delivery player". The transaction represents an implied value of 75.15 dollars for each Grubhub share and implies a total equity consideration of 7.3 billion dollars.

Delta Airlines (DAL) forecasts second quarter sales to be down 90% with a systemwide capacity down 85%. The company expects to reduce its average daily cash outflow to approximately 40 million dollars by June 30, 2020, down from approximately 100 million dollars per day as of March 31, 2020.

Regeneron (REGN), the pharma company, announced "the initiation of clinical trials for its investigational anti-viral antibody cocktail for the treatment and prevention of COVID-19".

Source : TradingVIEW, Gain Capital


More from Equities

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.