US Futures still under pressure, watch CSCO, TSN, FCAU

The S&P 500 Futures remain on the downside after they dropped for a second session yesterday on Powell's downbeat comments

FOREX 8

The S&P 500 Futures remain on the downside after they dropped for a second session yesterday as investors were discouraged by Federal Reserve Chairman Jerome Powell's downbeat comments about the economy. Mr. Powell warned of an extended period of weak growth and stagnant incomes due to the coronavirus pandemic. And he said additional fiscal stimulus should be provided to prevent long-lasting economic damage. Meanwhile, the Fed chief stated that the central bank would not push interest rates below zero.

Later today, Initial Jobless Claims for the week ended May 9 (2.500 million expected) and Import Price Index for April (-3.2% on month expected) will be reported. In Canada, March Manufacturing sales are expected at -5.7% on month.

European indices remain under pressure. The German Federal Statistical Office has posted final readings of April CPI at +0.9% (vs +0.8% on year expected). France's INSEE has reported 1Q jobless rate at 7.8% (vs 8.4% expected).

Asian indices all closed in the red. Australia's official jobs report show that the economy shed 594,300 jobs in April (-575,000 jobs expected), while jobless rate climbed to 6.2% (8.2% expected) from 5.2%.

WTI Crude Oil Futures are posting a rebound. The U.S. Energy Information Administration (EIA) released a weekly report for May 8, which stated that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 0.7M barrels from the previous week to 531.5M barrels.

Gold consolidated while US dollar hit a three-week peak after Jerome Powell comments.

Gold slightly fell 0.65 dollar (-0.04%) to 1715.63 dollars. EUR/USD decreased 27pips to 1.0791 while GBP/USD declined 24pips to 1.2208.

US Equity Snapshot


Cisco Systems (CSCO), a leading global supplier of network hardware and software, is expected to gain ground after reporting third quarter adjusted EPS up to 0.79 dollar, above estimates, up from 0.78 dollar a year ago, on sales down 12.0 billion dollars, also beating the consensus, from 13.0 billion dollars a year earlier.

Tyson Foods (TSN), the largest US producer of processed chicken and beef, will lower prices for some of its beef products by 30%, according to a Dow Jones report.

Fiat Chrysler (FCAU), the carmaker, will not distribute an ordinary dividend in 2020 related to fiscal year 2019, in light of the impact from the current COVID-19 crisis.


Source : TradingVIEW, Gain Capital

More from Indices

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.