The S&P 500 Futures remain under pressure after they ended in the red yesterday as Minutes from the U.S. Federal Reserve's latest meeting showed that officials expected the economy to require "additional accommodation" for recovering from the coronavirus pandemic.
Later today, investors will watch closely numbers of U.S. Initial Jobless Claims (a decline to 920,000 is expected). The Conference Board Leading Index will also be released (+1.1% on month in July expected). The Philadelphia Federal Reserve will report its Business Outlook Index for August (21.0 expected).
European indices are on the downside. The German Federal Statistical Office has posted July PPI at -1.7% (vs -1.8% on year expected).
Asian indices all closed in the red.
WTI Crude Oil futures are under pressure. The U.S. Energy Information Administration reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.6M barrels from the previous week to 512.5M barrels for week ended August 14. U.S. crude oil inventories are about 15% above the five year average for this time of year. Standard Chartered Bank projected that September U.S. shale oil production would fall by 263K b/d to 1.65M b/d, the level of November in 2019. The bank said: "The rapid collapse in U.S. shale oil output should perhaps be the main story in the oil market; if the arrival of shale oil were an inflexion point for market perceptions, its departure should be of similar interest."
Gold and US dollar gained ground after Fed pessimistic outlook
Gold rose 1.92 dollars (+0.1%) to 1931.41 dollars while the dollar index gained 0.12pt to 93.01.
U.S. Equity Snapshot
Nvidia (NVDA), a leading designer of graphics processors, released second quarter adjusted EPS and sales that beat estimates but lost some ground in extended trading, as the stock was trading to an all-time high reached on August 18 at 502.44 dollars.
Source: TradingView, GAIN Capital
Intel (INTC), a designer and manufacturer of microprocessors, popped after hours after announcing it is entering into accelerated share repurchase agreements to repurchase an aggregate of 10 billion dollars of the company’s common stock.Alibaba (BABA), the Chinese online retailer, is consolidating before hours despite posting better than expected quarterly earnings.
Estee Lauder (EL), the cosmetics company, announced cutting 1,500 to 2,000 positions and unveiled fourth quarter and guidance that missed estimates.
L Brands (LB), a women's apparel and beauty products retailer, disclosed second quarter adjusted EPS of 0.25 dollar, significantly exceeding consensus, up from 0.24 dollar a year ago, on better than expected sales of 2.3 billion dollars, down from 2.9 billion dollars last year.
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.
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.